Europe’s dependence on the United States for NATO security limits its options. Its strongest response would be a trade “bazooka,” and other options are possible.

T HE EUROPEAN UNION and Mercosur, a bloc of South American countries, first started negotiating their trade deal last century. In 1999 Bill Clinton was in the White House, Boris Yeltsin was stumbling around the Kremlin and China had yet to join the World Trade Organisation.

Hedge funds closed their bullish euro positions just days before US President Donald Trump threatened to impose new tariffs on European nations as he ramped up efforts to take over Greenland.

Trump threatened heavy tariffs on countries standing between him and Greenland. E.U. leaders are scrambling for a response.

European Union leaders are using strong language like "intimidation" and "blackmail" to describe U.S. President Donald Trump's threat of new tariffs over Greenland