Europe faces a high-stakes week as Trump tariff threats loom

EU capitals brace for a tense week as Donald Trump threatens 10% tariffs on six EU states and Nato allies over Greenland, prompting potential retaliation of up to €93bn and possible use of the Anti-Coercion Instrument to curb US firms’ EU access. Leaders are set for crisis talks, including an emergency summit in Brussels after Davos, as they weigh carrots and sticks while monitoring crisis diplomacy. ECB vice-president candidate Mário Centeno warns tariffs would be a “structural shock” requiring coordinated monetary, fiscal and competition policy, even as some officials hope Trump’s threats prove temporary.