President Donald Trump’s latest tariff threats over Greenland and Europe’s potential countermeasures could result in significantly higher import prices that could weaken both economies. The EU implemented its trade agreement with the Trump administration last summer, but it hasn’t yet signed the accord. Trump may have allowed for a loophole, however: Trump’s tariffs are directed at a select few member nations, not the entire European Union. So the eight countries could reroute trade within the EU’s free trade bloc to avoid those tariffs. It’s the uncertainty about whether Trump will escalate his tariff threats or back out before imposing new duties that could make trading partners steer clear of America long-term.

Source: CNN January 18, 2026 22:10 UTC