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European leaders are preparing a major response to US President Donald Trump's threats over Greenland, potentially targeting American goods with 93 billion euros ($107.7 billion) in tariffs or limiting US companies' access to European markets, the Financial Times reported Sunday.

The measures are being drafted ahead of this week's World Economic Forum in Davos, Switzerland, where EU officials hope to gain leverage during high-stakes meetings with Trump, Reuters reported.

European capitals want to show they are ready to respond strongly if the US enforces tariffs against countries supporting Greenland.

Trump recently warned that eight European nations backing Greenland could face new tariffs unless they agreed to sell the territory to the United States.

In reaction, EU ambassadors met Sunday evening in Brussels to discuss potential countermeasures, including retaliatory tariffs and other trade restrictions.

One option under discussion is the use of the EU's anti-coercion instrument, sometimes called a "trade bazooka."

This tool is designed to protect the bloc from economic pressure and could restrict American companies' access to European markets or control certain exports.

Traditionally, it has been aimed at countries like China, making its potential use against a long-time ally such as the US highly unusual.

European Council President Antonio Costa emphasized unity among member states, posting on social media that the EU supports Greenland and Denmark.

"Trump's new tariffs would be incompatible with the EU-US trade agreement," Costa wrote, signaling that the bloc sees Washington's threat as a breach of trade rules.

EU Nations Unite in Support of Greenland

Earlier, Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom released a joint statement affirming their commitment to Arctic security and their support for Greenland.

"As members of NATO, we are committed to strengthening Arctic security as a shared transatlantic interest," the statement said. "We stand in full solidarity with the Kingdom of Denmark and the people of Greenland."

According to FinancialExpress, the discussions reflect growing tensions between the US and Europe over Greenland, a Danish territory of strategic interest in the Arctic.

The EU's potential countermeasures aim to send a clear message to Washington while protecting trade and political stability in the region.

Officials involved in the preparations told the Financial Times that the EU is considering all options to ensure it can respond effectively if Trump follows through on his threats.

The bloc's leaders are expected to hold an emergency meeting later this week to finalize their approach before the Davos forum begins.

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