Greenland, Europe, and the Risk of a Trade War
- Schulz Trade Law
- Jan 20
- 2 min read
Greenland, Europe, and the Risk of a Trade War
Michelle Schulz explains why tariff threats tied to Greenland could trigger EU retaliation—and what that means for U.S. companies.
In an interview on KLIF Radio in Dallas–Fort Worth, Michelle Schulz, founder and managing partner of Schulz Trade Law, addressed escalating tensions between the United States and Europe following renewed tariff threats connected to Greenland. With the European Union openly discussing the use of its so-called “economic bazooka,” Michelle outlined how trade disputes are rapidly turning into geopolitical flashpoints—with serious consequences for U.S. businesses, exporters, and global trust.
How Greenland Sparked a New Trade Flashpoint
The latest controversy stems from proposed U.S. tariffs—reportedly around 10%—on goods from several European countries following their opposition to U.S. control over Greenland. Michelle warned that this rhetoric has significantly escalated tensions.
“Yes, I believe it certainly could [lead to a trade war]. We’re hearing from both sides—there’s a lot of tension.”
According to Michelle, European officials view the proposed tariffs as punitive and coercive, prompting a coordinated response from EU leadership.
“This latest round… has really upset the European Union, and we’re seeing officials coming together and trying to find a response.”
The EU’s ‘Economic Bazooka’ and Retaliation Risk
European leaders have openly discussed deploying their Anti-Coercion Instrument—sometimes referred to as the EU’s economic bazooka—which could authorize retaliatory measures totaling more than $100 billion.
“It could be devastating. This would increase tariffs substantially on some of our biggest companies.”
Michelle noted that retaliation would likely target emblematic U.S. industries and products.
“Things like Boeing… bourbon—things that are typically U.S.—are going to be tariffed.”
Unlike traditional tariffs, the EU’s response could extend beyond goods to include services, making the potential impact broader and more severe.
Why Europe Is Taking Such a Hard Line
Michelle explained that European leaders see the Greenland issue as a matter of sovereignty and international law—not negotiation tactics.
“There’s no doubt that Greenland is a sovereign nation… there’s no right for one country to take over another country.”
She emphasized that European institutions have framed the issue as a collective defense of international norms.
“Whether it’s Ukraine, Greenland—anywhere—the European Union will stand together.”
This unified stance raises the likelihood of retaliation rather than compromise.
The Longer-Term Cost: Lost Trust and Business Flight
Beyond immediate tariffs, Michelle warned that the greatest damage may already be occurring behind the scenes.
“We’ve already lost their trust. We’re seeing companies leaving the U.S., not wanting to do business with us.”
Even if tariff threats are later withdrawn, rebuilding credibility with European partners could take years—especially as companies seek more stable jurisdictions for long-term investment.
What This Means for U.S. Businesses
For importers, exporters, and multinational companies, the Greenland episode signals a new level of trade risk—where tariffs may be imposed rapidly, tied to political objectives, and met with coordinated international retaliation.
Trade planning now requires not only legal compliance, but geopolitical awareness.
As tariffs increasingly intersect with geopolitics and diplomatic pressure, businesses need proactive strategies—not reactive fixes.
Schulz Trade Law helps companies assess exposure, prepare for retaliation risk, and navigate rapidly shifting trade policy with clarity and precision.
Trade on, but trade informed!
Subscribe to Schulz Trade Law for more updates.
Comments