President Trump’s threat of 10% tariffs on eight EU nations over Greenland could jeopardize a U.S.-EU trade pact. Wolfe Research analysts warn the move puts the agreement, which limits tariffs at 15%, at risk. EU officials have suggested they cannot ratify the deal if Trump pursues the Greenland purchase.

The pact, signed last July with EU Commission President Ursula von der Leyen, was designed to stabilize transatlantic trade. Trump’s demand to buy Greenland, which he calls a national security imperative, has been labeled blackmail by European states. An emergency Brussels summit is scheduled to discuss potential retaliation, including tariffs on $93 billion of U.S. imports.

Wolfe analysts noted Trump’s tariff rhetoric contrasts with recent dovish signals, like delaying levies on Chinese semiconductors. They caution against overreading these mixed signals amid complex trade sectors. Investors now watch whether the EU will activate its Anti-Coercion Tool, which could limit U.S. access to European investment and banking services.