Make Me Smart Trump’s rift with Europe
Jan 27, 2026
Paola Tamma, Financial Times correspondent in Brussels who covers the EU economy and transatlantic relations. She explains Europe's stunned response to Trump’s Greenland and tariff threats. Short takes cover the shift from appeasement to firmer postures, limits on EU retaliation, the 'trade bazooka' option, security trade-offs, and efforts to diversify trade ties away from the U.S.
AI Snips
Chapters
Transcript
Episode notes
Shock Revealed Unstable U.S.-EU Ties
- Europeans felt 'shell-shocked' after Trump's Greenland threat and subsequent tariff talk.
- That episode revealed a deeper worry: U.S.-EU relations are unpredictable and possibly untrustworthy.
From Appeasement To Cautious Pushback
- Europe shifted from appeasement to firmer responses after realizing prior deals could be overturned by the U.S.
- Leaders worried that past concessions might not hold if U.S. policy changes again.
Weigh Costs Before Using The 'Trade Bazooka'
- Use the anti-coercion 'trade bazooka' only after weighing political costs and securing a qualified majority.
- The instrument can include market access restrictions or counter-tariffs but needs 65% population support to trigger.