EU should issue ‘smart’ response to US president’s threat of tariffs against several countries, say business leaders

European industry has hit back at Donald Trump’s “ludicrous demands” to hand over Greenland or face a trade war.

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Trump’s shock threat on Saturday to impose additional tariffs of 10% in February with a further 25% in June have derailed a period of relative transatlantic trade calm after the EU-US agreement struck at the US president’s Scottish golf course last July.

European leaders are expected to meet in Brussels on Thursday for an emergency summit to discuss the prospect of imposing counter-tariffs on US exports on 7 February that would hit everything from liquid gas to aircraft and machinery.

The German engineering trade group, whose members include vital tool machine exporters, urged the EU to face Trump down. “If the EU gives in here, it will only encourage the US president to make the next ludicrous demand and threaten further tariffs,” said Bertram Kawlath, the president of the German engineering association VDMA.

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