The Globe and Mail reports in its Monday edition that German industry has reacted with anger to U.S. President Donald Trump's planned use of tariffs to crank up the pressure on Denmark to sell Greenland, calling on Europe not to cave in to his demands. A Reuters dispatch to The Globe says that Mr. Trump's threat to implement a wave of increasing tariffs on European allies until the U.S. is allowed to buy the strategically important island derails a period of relative calm for businesses after Brussels and Washington agreed to a trade deal last summer. Germany is vulnerable to tariffs owing to its export-focused economy, which is slowly emerging from two years of decline, with global trade tensions weighing on demand for its goods like cars, machinery and chemicals. "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 at German engineering association VDMA. The European Union has a never-before-used "Anti-Coercion Instrument" which allows the bloc to retaliate against countries that put economic pressure on EU members to change their policies. Volkswagen estimated the cost of tariffs at up to five billion euros in 2025.
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