Europe to counterstrike with tariffs worth £80bn

EU set to take on Washington DC in trade war as Starmer warns Trump his desire to take over Greenland is 'wrong'

- MARYAM ZAKIR-HUSSAIN ALEX CROFT

The EU is preparing to strike the US with a hefty set of tariffs worth €93bn (£80.6bn) after Donald Trump's threats over Greenland. The bloc is also considering restricting some US companies from its market in response to the threats, according to the Financial Times.

The EU hopes the measures, which were discussed during a meeting of EU ambassadors in Brussels yesterday, will provide European leaders with leverage in pivotal meetings with Mr Trump at the World Economic Forum in Davos this week. It comes after the eight nations at risk of US tariffs - Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and Britain - warned in a joint statement that tariffs would “undermine transatlantic relations and risk a dangerous downward spiral”.

Sir Keir Starmer held a call with Mr Trump yesterday evening in which he told the US president that “applying tariffs on allies for pursuing the collective security of Nato allies is wrong”, according to Downing Street. Mr Trump said on Saturday that 10 per cent tariffs would come into effect on 1 February, before increasing to 25 per cent on 1 June and continuing until a deal is reached for the US to purchase Greenland.