EU PRESSES HOLD ON US TRADE DEAL
US President Donald Trump’s demands for Greenland to become its 51st state and threats of new tariffs from him against eight European nations have halted a new EU-US trade deal worth A$2.78 trillion.
Amid threats of military annexation, US President vowed to impose a wave of tariffs on Denmark, Norway, Sweden, France, Germany, Netherlands, Finland and the UK; it is to start at 10% next month and reach 25% in June.
The EU is reportedly eyeing triggering a so-called ‘trade bazooka’ in the shape of $161.4 billion of counter-tariffs if the US follows through.
European Commission President Ursula von der Leyen and European Council President Antonio Costa both supported Greenland and Denmark in a joint statement.
“The EU stands in full solidarity with Denmark and the people of Greenland. Dialogue remains essential,” they said earlier this week.
“Tariffs would undermine transatlantic relations and risk a dangerous downward spiral,” they added.
“Europe will remain united, co-ordinated, and committed to upholding its sovereignty.”
Trump first announced tariffs of 30% on the 27-nation EU bloc last July, who are America’s biggest trading partner, but both sides had agreed to a 15% tariff on most goods which the deal would have ratified.
Germany, Sweden, France, Norway, Netherlands and Finland have sent troops to Greenland while Denmark boosted its military presence.
Huge crowds have taken to the streets in Denmark to show support for Greenland even as US lawmakers visit to reassure their NATO allies and protestors took to the streets to show their support for Greenland.
EU SIGNS ON WITH MERCOSUR
After 25 years, the EU has signed a trade deal with the Mercosur grouping of Brazil, Argentina, Uruguay and Paraguay.
The deal, worth A$192 billion in 2024, is expected to create a shared market of 700 million people.
Von der Leyen describes the deal as a “win-win” outcome for both parties and a “strong geopolitical pledge”.
“The bond between our regions is already among the strongest on the planet based on shared values, respect for rules and trust,” she says.
“Now, we are signing on the dotted line to say ‘we are in it for the long haul’. Ours will be a long-term partnership … for political dialogue on … sustainability, equality, peace and security.
“This matters more than ever in today’s world and the message will resonate everywhere,” she told guests at the signing ceremony held in the Paraguayan capital of Asuncion.
EARLIER EUROPE NEWS: Aussie pension funds eye European markets
