German employers desperate to avoid escalation with US over Greenland

German employers have said they are desperate to "avoid any escalation" with the United States in the intensifying row over ownership of Greenland.

Rainer Dulger, president of the Confederation of German Employers' Associations (BDA), said that businesses are "very interested in a conflict-free solution" and "would have liked to avoid an economic conflict."

Trump announced on Saturday that he would impose punitive tariffs on goods from Germany and seven other European NATO members over their opposition to US control over Danish-administered Greenland, a largely autonomous Arctic territory.

Dulger said German employers are standing by Chancellor Friedrich Merz's government, which has criticized Trump's tariff threats while seeking to de-escalate.

Merz said on Monday that Europeans would respond "calmly and appropriately" to Trump's move. "We agree that we want to avoid any escalation in this dispute as far as possible," he added.

His deputy Lars Klingebil, meanwhile, said Europe "won't be blackmailed" over the issue of Greenland.

European leaders are set to convene in Brussels on Thursday to discuss how to respond to Trump's latest tariff threat.

As an export-led economy, Germany has suffered from global volatility linked to Washington's aggressive tariff policy, with official data released on Tuesday showing exports to the United States dropped almost 10% over the first 11 months of 2025.

Dulger highlighted that the European Union could impose extra duties worth up to €93 billion ($109 billion) on US goods such as aeroplanes, motorcycles, beef, whisky and citrus fruits.

Other economic retaliatory measures are also possible, he said, such as excluding US companies from public procurement contracts or imposing import and export restrictions on certain products.