EU prepares €93 billion trade response to U.S. tariff threat over Greenland

Stephen Grootes speaks to Donald MacKay, director at XA International Trade Advisors about the EU weighing €93 billion in retaliatory tariffs as tensions escalate over President Donald Trump’s threat of a 10% levy linked to Greenland, and Professor David Monyae, Director of the Centre for Africa - China Studies at the University of Johannesburg.

Listen to the interview in the audio player below.

European Union leaders are preparing a €93 billion trade response after U.S. President Donald Trump threatened to impose a 10% tariff on imports from several European countries over an ongoing dispute regarding Greenland.

Countries including Denmark, Germany, France, Sweden, the Netherlands, Finland, the UK and Norway face extra duties starting at 10% on goods exported to the U.S, unless those countries change their stance on Greenland, and align with Trump's view that it should be an American territory.

Greenland is a semi-autonomous territory of Denmark.

However, Trump is pushing for America to have control of the island, located in the Arctic region.

He's threat of tariffs are set to kick in on 1 February.

Speaking to Stephen Grootes on The Money Show, Donald MacKay, Director at XA International Trade Advisors says Trump's threat of imposing tariffs on countries appears to be his solution to resolving every situation. 

"The only reason countries like China get away with that, is because of the incredibly oppressive environment locally. It's considerably harder to do in a country like the U.S, so no, I think it would be very hard to pull off."

- Donald MacKay, Director at XA International Trade Advisors

“Let’s also not forget that the U.S. consumer is ultimately footing the bill. What President Trump is effectively saying is: ‘If you don’t let me buy Greenland, or take Greenland, I’m going to raise taxes on my own domestic consumers.’ At some point, that has to carry a high political cost.”

- Donald MacKay, director - XA International Trade Advisors

Professor David Monyae, Director of the Centre for Africa - China Studies at the University of Johannesburg says Trump is taking the America and the world back to pre-1945 imperialism, where power reigns supreme.

"...it's not only tariffs that he is using in his toolbox. It's the military. We've seen with Venezuela. We're going to see this show playing in so many areas. Currently he's doing it with Iran, and so many countries will face the same."

- Professor David Monyae, Director of the Centre for Africa - China Studies - University of Johannesburg 

"It is rational in his world, because there is nothing different between Venezuela and Greenland. Venezuela had nothing to do with Maduro. It has to with oil and the price of oil."

- Professor David Monyae, Director of the Centre for Africa - China Studies - University of Johannesburg 

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