President Donald Trump’s pursuit of Greenland is the latest escalation in the global tariff roller coaster.

Over the weekend, Trump announced plans to impose a 10% tariff on goods from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom. The move is part of the president’s plan to gain control of Greenland, which remains under the sovereignty of Denmark. If enacted, the threatened levies would go into effect beginning Feb. 1 and could increase to 25% by June 1 if an agreement to purchase the arctic island is not reached before then.

For the promo industry, these latest tariffs could have various impacts across specific categories like apparel, electronics and luxury goods.

A Busy Weekend

Trump’s announcement, which arrived in the form of a Truth Social post on Saturday, is the latest ploy to coerce European countries to come to the negotiation table as he looks to purchase Greenland from Denmark.

On Sunday, representatives from European countries gathered for an emergency meeting, during which President Macron of France asked the EU to activate an anti-coercion trade tool (also known as a “trade bazooka”) that could block some of America’s access to EU markets, turn on export controls and enact several other countermeasures against the U.S.

“People ask me, ‘Is the anti-coercion instrument back on the table?’ It was never off the table,” Olof Gill, a spokesperson for the EU Commission, told reporters on Monday. “The EU has tools at its disposal and is prepared to respond should the threatened tariffs be imposed.”

The EU is also threatening to move forward with €93 billion ($108 billion) of retaliatory tariffs against the U.S., which were paused when the EU and U.S. reached a tentative trade agreement last year.

A trade bazooka could suspend U.S. company licenses and tax services abroad, but may take months to implement, Brookings Senior Nonresident Fellow Dan Hamilton told CNN Business.

“We’re always one social media post away from things being turned upside down. We’re stuck having to guess what the law is rather than getting to interpret it.”Jing Rong, HPG (asi/61966)

Promo Bracing for Potential Impact

While the promo industry does a majority of its sourcing in Asia – and increasingly in Canada and Mexico – the EU is not insignificant as a sourcing destination. Many luxury goods are still produced in China, but production of these material goods is growing in France and other EU nations. The promo industry in general continues to see an influx of retail brands across categories and various price points.

Relatedly, large distributors are continuing to expand internationally, particularly in Europe, through acquisitions and strategic partnerships with overseas distributors. Such partnerships could slow if trade relations between the U.S. and Europe strain.

The Census Bureau reported that in 2024, the U.S. sourced $147.7 billion with the United Kingdom, $122.27 billion with the Netherlands and $103 billion with France.

A State of Tariff Limbo

Now, businesses must continue to do what they’ve been doing over the last several months: Wait.

While the threatened tariffs on European countries may not starkly impact individual companies in the short term, European leaders say the levies could accelerate geopolitical tensions that would harm U.S. companies in the long term.

“Tariffs would undermine transatlantic relations and risk a dangerous downward spiral,” said European Commission President Ursula von der Leyen and European Council President António Costa in separate but identical posts on X Saturday. “Europe will remain united, coordinated and committed to upholding its sovereignty.”

Trump’s Truth Social post comes just days after he used the same medium to threaten a 25% levy on goods from any countries that do business with Iran, including China, India, Russia, Turkey and Iraq, among dozens of others. However, the White House has not released a policy with any additional details on these tariffs, and the president did not disclose the legal authority he would use to enact the levies.

“We’re always one social media post away from things being turned upside down,” Jing Rong, VP of global supply chain and sustainability at Counselor Top 40 supplier HPG (asi/61966), told ASI Media in October. “We’re stuck having to guess what the law is rather than getting to interpret it.”

The U.S. Supreme Court is in the midst of deciding a case to determine whether many of President Trump’s tariffs are constitutional under the International Emergency Economic Powers Act. The court is expected to reach a verdict no later than June.