US official says EU should consider separating Greenland tariff issue from US trade deal

By David Shepardson

DETROIT, Jan 17 (Reuters) – U.S. Trade Representative Jamieson Greer said on Saturday it is up to Europe to decide whether it wants to raise new tariff threats from President Donald Trump against some European countries over Greenland.

“If I were the Europeans I would probably try to silo this off if they can. If they want to make it an issue in the trade deal that’s really up to them and not us,” Greer told reporters at the Detroit Auto Show.

Trump on Saturday vowed to hit some European allies with tariffs for opposing his desire to take over Greenland.  Trump said additional 10% import tariffs would take effect on February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain – all already subject to tariffs imposed by Trump – and would rise to 25% on June 1 if no deal had been reached.

In September, the Trump administration formally implemented the U.S. trade agreement with the European Union, adopting a 15% duty rate for EU autos and auto parts and setting exemptions for generic pharmaceuticals, aircraft and aircraft parts.

Greer said the potential Greenland tariffs “are largely national security determinations” but said “whenever there’s a tariff involved, we’re involved, and we want to make sure that we’re equipping the president to be able to take whatever steps he makes.”

Greer noted the EU has yet to lower any U.S. tariffs as part of the deal. “They promised to do it, we’ve moderated our tariffs for them, they have yet to do it for us. It’s winding through their process slowly,” Greer said.

Greer also said he has already spoken to his Canadian counterparts since they on Friday announced a deal to allow China to import 49,000 EVs to Canada under lower tariff rates. Greer and other U.S. officials called the idea problematic and said Canada would come to regret it.

(Reporting by David Shepardson in Washington; Editing by Chris Reese)