President Donald Trump's threat to impose tariffs on eight European countries unless they support his plan to buy Greenland has prompted discussions about potential retaliatory measures from the European Union. The US president stated on Saturday that he would introduce a 10% levy on imports into the US on 1 February, rising to 25% from the summer if no deal is reached. It remains unclear whether these tariffs would be added to existing levies.

France and Germany, both part of the group of eight which includes the UK, Denmark, Norway, Sweden, the Netherlands and Finland, have indicated that the European Union should be prepared to act if Trump implements the taxes. The question now is what options Europe has to respond to the US.

One potential response is for Europe to impose its own tariffs on US goods. This tit-for-tat approach has been used in the past, but it can escalate trade tensions and harm businesses and consumers on both sides of the Atlantic. Less than six months ago, the US and the EU agreed a deal that was intended to stabilize transatlantic trade and provide certainty to businesses and consumers.

European Commission President Ursula von der Leyen secured tariffs of 15% on everything the EU sells to the US, a result considered far better than the alternative. The current situation highlights the fragility of international trade relations and the potential for sudden shifts in policy.

The EU's response will likely involve careful consideration of the potential economic and political consequences. The situation remains fluid, and the next steps will depend on whether the US follows through with its tariff threat.