The European Union is preparing retaliatory tariffs worth €93 billion and potential restrictions on US firms in response to Donald Trump's threat to impose duties on European allies who oppose his Greenland ambitions. This marks the deepest crisis in US-EU relations for decades. Trump's plan, which includes 10 per cent tariffs from February 1 on several European nations, has prompted calls from France and Germany to activate new EU powers that could curb access for US tech giants. While some EU states want to maintain dialogue, others insist on firm countermeasures if Trump refuses to back down. The issue is expected to dominate this week's World Economic Forum in Davos, where leaders will meet to seek a resolution. Markets reacted sharply, with European stock futures down 1.5 per cent and gold rising 2 per cent to a record high.