Europe is bracing for a new trade fight with Trump. Here are its options.

Subscribe to enjoy similar stories. BRUSSELS—European leaders racing to respond to the threat of U.S. tariffs for opposing President Trump’s plan to take control of Greenland have an arsenal of options, including trade retaliation, reducing defense ties and a “bazooka" to defend against economic coercion.

Individually, the nations Trump has threatened with economic measures can do little about his 10% tariffs, but as a unit they could raise the cost of using the levies to extract concessions on Greenland, a semiautonomous Danish territory. The European Union already has a list of U.S. goods worth more than $100 billion on which it could impose retaliatory tariffs.

The bloc also has the power to withhold key parts of its trade agreement with the U.S., which Trump has called “a giant deal." In crisis talks Sunday, EU ambassadors also discussed using a never-before-deployed tool—often dubbed the bazooka—that allows them to fight back when under economic duress from another country. The ambassadors didn’t reach a decision on which route to pursue. Diplomats said there is still time for talks with the U.S.

and internal discussions before the bloc decides how to respond. European leaders are set to meet to discuss the matter later this week, after the start of the World Economic Forum that Trump is expected to attend in Davos. When Trump announced his “Liberation Day" tariffs last year, European leaders, many of them NATO allies, hesitated to strike back, hoping to keep him involved in the military alliance and especially in Ukraine’s defense.