Automotive News Europe — 2026-01-18
News from Brussels
President Donald Trump’s threat to impose punitive tariffs on countries that support Greenland would cost Germany and Europe dearly, Germany’s VDA auto industry association said.
Trump announced a 10 percent tariff as of Feb. 1 on goods from European countries that have rallied to support Greenland in the face of U.S. threats to seize the semi-autonomous Danish territory.
In a social media post, Trump said the levies would increase to 25 percent unless and until “a Deal is reached for the Complete and Total purchase of Greenland.” The tariffs will apply to Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland, Trump said.
The VDA warned the tariffs will impose “enormous” costs on German and European automakers. “What is crucial now is a smart, strategic response from Brussels that is coordinated with the countries affected,” VDA President Hildegard Mueller said in a statement.
Trump’s current tariff regime, which charges a levy of 15 percent on auto exports from the European Union to the U.S., has already weighed heavily on German companies, in particular its car industry, Europe’s largest.
Volkswagen estimated the cost of tariffs at up to €5 billion in 2025. Mercedes and Porsche have also suffered, as well as chemicals group BASF.
Trump’s demands are labelled ‘ludicrous’
Two other German bodies reacted with anger on Jan. 18 to Trump’s threat to impose punitive tariffs to crank up the pressure on Denmark to sell Greenland. They called on Europe not to cave in to his demands.
“If the EU gives in here, it will only encourage the U.S. president to make the next ludicrous demand and threaten further tariffs,” said Bertram Kawlath, president of the German engineering association VDMA.
“Highly controversial political goals are being tied to economic sanctions in an unacceptable manner,” said Volker Treier, a foreign trade specialist at the German Chamber of Commerce and Industry (DIHK).
Trump told reporters aboard Air Force One that the U.S. is open to negotiations with Denmark and the affected European countries.
“We’re talking about acquiring — not leasing, not having it short-term, we’re talking about acquiring and if we don’t do it, Russia or China will and that’s not going to happen while I’m president," Trump said.
The White House did not immediately respond to questions about what legal authority Trump will use or how he will apply individual tariffs to EU member states.
EU trade deal faces block
European Union lawmakers signaled they will halt approval of a U.S.-EU trade agreement struck with Trump in July following the new tariff threat. The deal set a 15 percent U.S. tariff for most EU goods and has been partially implemented but requires European Parliament agreement.
Manfred Weber, president of the European People’s Party, the largest political group in the European Parliament, said Jan. 17 that agreement with the U.S. is no longer possible.
“The EPP is in favor of the EU-U.S. trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage,” Weber posted on social media. He said the EU agreement to lower tariffs on “U.S. products must be put on hold.”
If EPP lawmakers join left-leaning political groups, they will likely have enough votes to delay or block approval.
Opposition to the July agreement has grown as the U.S. expanded a 50 percent tariff on steel and aluminum to hundreds of additional EU products after the accord.
U.S. Trade Representative Jamieson Greer criticized the EU in December for not following through on aspects of the agreement, particularly regarding the bloc’s regulation of tech companies.