Following an emergency meeting of EU ambassadors on Sunday, January 18, the bloc signaled that it will no longer pursue a policy of “appeasement.” The proposed $108 billion package is essentially an “unfreezing” of a massive tariff list that was originally prepared in 2025 but suspended following a temporary truce.
Key Targets: What’s on the EU List?
The EU’s strategy is designed to hit politically sensitive industries and major U.S. exporters to create maximum leverage before the World Economic Forum in Davos later this week.
- Aviation: Significant duties on Boeing Co. aircraft and aerospace parts.
- Automotive: 25% tariffs on U.S.-made cars and electric vehicles.
- Consumer Goods: Iconic American exports including Bourbon whiskey, Harley-Davidson motorcycles, and luxury apparel.
- Agriculture: Retaliatory taxes on U.S. lobster, cheese, and cotton.
- Tech Sector: New digital services taxes and market restrictions aimed at U.S. tech giants as part of the “Anti-Coercion” framework.
The Anti-Coercion Instrument (ACI)
For the first time, the EU is seriously weighing the activation of its “Trade Bazooka”—the Anti-Coercion Instrument.
- Purpose: A legal tool designed to counter “economic blackmail” from foreign powers.
- Powers: Beyond simple tariffs, the ACI allows the EU to ban U.S. firms from bidding on public contracts and restrict American banks from operating in specific European sectors.
- Support: While France is pushing for immediate activation, other nations like Italy remain cautious, preferring a final round of “peace through strength” negotiations in Davos.
| Date | Event | Impact |
| Jan 17, 2026 | Trump announces 10% tariffs | Direct hit on 8 EU/NATO allies. |
| Jan 19, 2026 | EU Halts Trade Deal | Approval of the July 2025 US-EU pact is suspended. |
| Feb 1, 2026 | US Tariffs go live | 10% tax on European imports. |
| Feb 6, 2026 | EU Counter-Tariffs | Tentative “Automatic Activation” date for the $108B package. |
The “Greenland Eight” Stand Firm
The eight countries targeted by Trump—Denmark, Norway, Sweden, Finland, France, Germany, the UK, and the Netherlands—issued a joint statement on Monday. They warned that using tariffs to force a land sale “risks a dangerous downward spiral” and reaffirmed their “full solidarity with the Kingdom of Denmark.”
Conclusion: A Transatlantic Rupture
As silver and gold prices surge in response to the geopolitical instability, the global economy is bracing for a “risk-off” episode. If the EU proceeds with the $108 billion package on February 6, it will mark the largest trade confrontation in the history of the Western alliance. With U.S. Treasury Secretary Scott Bessent dismissing the EU’s threats as “projections of weakness,” the stage is set for a high-stakes showdown at the Davos summit.
