BERLIN, Jan 18 (Reuters) - German industry reacted with anger on Sunday to U.S. President Donald Trump’s planned use of tariffs to crank up the pressure on Denmark to sell Greenland, calling on Europe not to cave in to his demands.

Trump’s threat to implement a wave of increasing tariffs on European allies until the U.S. is allowed to buy the strategically important island derails a period of relative calm for businesses after Brussels and Washington agreed a trade deal last summer.

Germany is vulnerable to tariffs due to its export-focused economy, which is slowly emerging from two years of decline, with global trade tensions weighing on demand for its goods like cars, machinery and chemicals.

“If the EU gives in here, it will only encourage the U.S. president to make the next ludicrous demand and threaten further tariffs,” said Bertram Kawlath, president of the German engineering association VDMA.

“Highly controversial political goals are being tied to economic sanctions in an unacceptable manner,” said Volker Treier, a foreign trade specialist at the German Chamber of Commerce and Industry (DIHK).

Both called for a unified response from the European Union, joining a similar statement from the head of Germany’s VDA automotive association on Saturday.

This could include the EU’s never-before-used “Anti-Coercion Instrument”, which allows the bloc to retaliate against third countries that put economic pressure on EU members to change their policies. Saturday’s threat could derail tentative deals Trump struck last year with the European Union and Britain, which is also a target of the planned Greenland tariffs.

The VDMA and DIHK cast doubt on the likelihood that EU lawmakers would vote on the deal with Washington this month, principally involving the removal of many EU duties on U.S. goods imported into the bloc.