BRUSSELS, Jan 23 (Reuters) - EU leaders heaved a sigh of relief over Donald Trump's U-turn on Greenland as they met for an emergency summit in Brussels late on Thursday.
The leaders said they want an EU-U.S. trade deal to be back on track after the European Parliament suspended its ratification in protest over U.S. pressure to acquire Greenland.
While saying they want to work on strengthening the transatlantic cooperation, the EU leaders warned that they were ready to act if Trump was to threaten them again.
The Thursday evening summit was convened after the U.S. threatened steep tariffs, and possibly even military action in Greenland, before pulling back from those threats, saying a deal over the Arctic island was in sight.
"We were successful by being firm," European Commission chief Ursula von der Leyen said, referring to Trump dropping its threats against Europe over Greenland.
But Trump's threats badly shook Europe's confidence in its partner, EU officials and leaders said.
"Transatlantic relations have definitely taken a big blow over the last week," the bloc's foreign policy chief, Kaja Kallas, said as she arrived at the meeting.
TRUMP'S U-TURN IS GOOD NEWS, BUT EUROPE VIGILANT
The emergency summit, convened to reassess the EU-U.S. relationship, did not take any concrete decision.
"Things are quietening down and we should welcome that," French President Emmanuel Macron said.
"We remain extremely vigilant and ready to use the instruments at our disposal should we find ourselves the target of threats again," Macron told reporters, referring to "bazooka" trade sanctions the bloc had considered using.
The EU "will defend itself, its member states, its citizens and its companies, against any form of coercion," European Council chief Antonio Costa said.
Most leaders said the relationship with the United States remained key for the EU and it was one they were ready to work hard to maintain - while expecting hard work, and respect, from Washington as well.
"Europe is not willing to junk 80 years of good transatlantic relations because of disagreements ... we are willing to invest our time and energy in this," Kallas said.
NO MORE THREATS
EU governments remain wary of another change of mind by a mercurial president increasingly seen as a bully whom Europe will have to stand up to.
"Trump crossed the Rubicon. He might do it again. There is no going back to what it was," one EU diplomat said, adding that the bloc needed to move away from its heavy reliance on the U.S. in many areas.
"We need to try to keep him (Trump) close while working on becoming more independent from the U.S. It is a process, probably a long one."
Danish Prime Minister Mette Frederiksen said she was more than ready to discuss security cooperation in Greenland with the United States - as long as it fully respects their sovereignty.
"We have to work together respectfully without threatening each other," she said.
THE US HAS SUBSTANTIAL LEVERAGE
After decades of relying on Washington for defence within the NATO alliance, the bloc lacks the needed intelligence, transport, missile defence and production capabilities to defend itself against a possible Russian attack.
This gives the U.S. substantial leverage.
The U.S. is also Europe's biggest trading partner, making the EU vulnerable to Trump's policies of imposing tariffs to reduce Washington's trade deficit in goods, and, as in the case of Greenland, to achieve other goals.
One of the key questions will be how close Europeans want to remain to the United States, and how much trust remains. All said Europeans need to be united and have a common stance, but historical ties vary from one country to another.
"I still treat United States as our closest friend," Lithuanian President Gitanas Nauseda said.
Others were more cautious.
"It is important for ... our partners in Washington to understand the difference between domination and leadership. Leadership is OK," Poland's Prime Minister Donald Tusk said. "Coercion is not a good method."
EU-US TRADE DEAL
The EU had been ready to deploy a package of retaliatory tariffs on 93 billion euros ($108.74 billion) of U.S. imports and anti-coercive measures if Trump had gone ahead with his own tariffs that were to kick in on February 1, officials said.
European lawmakers are likely to resume their work on the ratification of the trade deal now that Trump has taken back his threats, European Parliament President Roberta Metsola said.
(Additional reporting by Andrew Gray, Bart Meijer, Ingrid Melander, Louise Rasmussen, Inti Landauro, Julia Payne Phil Blenkinsop, Maria Martinez, Dominique Vidalon; Writing by Ingrid Melander and Jan Strupczewski; Editing by Gareth Jones, Andrew Cawthorne and Andrew Heavens)
