Rima Grace

Even after the Trump administration imposed widespread tariffs last year, it reached a preliminary trade deal with the EU.

Even after the Trump administration imposed widespread tariffs last year, it reached a preliminary trade deal with the EU.

So we've been in a sort of...

So we've been in a sort of...

cool detente since summer.

cool detente since summer.

But now, with these new threatened tariffs over Greenland, Blanchard says that trade truce is almost certainly on pause, if not out the window.

But now, with these new threatened tariffs over Greenland, Blanchard says that trade truce is almost certainly on pause, if not out the window.

And Europe could retaliate.

And Europe could retaliate.

Uri Maitien is an analyst with the European Policy Center in Brussels.

Uri Maitien is an analyst with the European Policy Center in Brussels.

The trade bazooka is more formally known as Europe's anti-coercion instrument.

The trade bazooka is more formally known as Europe's anti-coercion instrument.

Maitien describes it as a regulation that says if another country is putting some kind of financial pressure on the EU to force a policy change, the EU, which is not known for being quick, can quickly hit back, unleashing tariffs against certain goods or even restricting certain companies from operating in Europe.

Maitien describes it as a regulation that says if another country is putting some kind of financial pressure on the EU to force a policy change, the EU, which is not known for being quick, can quickly hit back, unleashing tariffs against certain goods or even restricting certain companies from operating in Europe.

Maitien says before that can happen, the regulation requires that the EU try to negotiate with the U.S.

Maitien says before that can happen, the regulation requires that the EU try to negotiate with the U.S.

And he says European leaders don't really want to restrict trade.

And he says European leaders don't really want to restrict trade.