Donald Trump Tariffs: Trump Imposes Tariffs on 8 European Nations Amid Escalating Greenland Dispute

Donald Trump Tariffs - Trump Imposes Tariffs on 8 European Nations Amid Escalating Greenland Dispute
| Updated on: 18-Jan-2026 10:23 AM IST
US President Donald Trump has announced the imposition of 10% tariffs on eight European nations, effective February 1st. This move comes in response to these countries' opposition to a potential US acquisition of Greenland. Trump has issued a stark warning that if no agreement is reached with the United States regarding Greenland, these tariffs. Will be increased to 25% by June 1st, a development that threatens to further complicate global trade and geopolitical relations.

Tariffs and Trump's Ultimatum

In a social media post on Saturday, President Trump identified Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland as the countries subject to these new tariffs. He explicitly threatened to escalate the tariffs if a deal for the 'complete and full purchase of Greenland' isn't finalized within the stipulated timeframe. Trump's rationale includes the claim that the US has subsidized Denmark and all European Union countries for many years without imposing tariffs or taxes. He now believes that 'after centuries, the time has come for Denmark to return something in exchange because now world peace is at stake. ' This announcement follows a threat made by Trump during a White House meeting to impose tariffs on these nations.

Trump's Rationale for Greenland and the 'Golden Dome' Project

President Trump has underscored Greenland's critical strategic importance to the United States. He asserted that China and Russia aspire to acquire Greenland, and Denmark is incapable of preventing this, citing the presence of only 'two dog sleds' for security, while according to Trump, only the United States can effectively intervene in this 'game. ' He also noted that the US has been attempting to purchase Greenland for the past 150 years, with several presidents making efforts, but Denmark has consistently refused. On Friday, Trump further linked Greenland to a major defense project named 'Golden Dome,' inspired by Israel's 'Iron Dome. ' This US missile defense project aims to protect America from threats emanating from countries like China and Russia. Trump also revealed that the US is in discussions with NATO regarding Greenland, emphasizing that NATO should support the US, as a failure to control Greenland could allow Russia or China to expand their influence there, which would be unacceptable under any circumstances.

International Reactions and Canadian Prime Minister's Opposition

Trump's statements have elicited sharp international reactions. Canadian Prime Minister Mark Carney unequivocally stated on Friday that the. Ownership of Greenland isn't a decision for US President Donald Trump. He stressed that as a NATO country, Canada's responsibility towards Greenland remains, and. 'the future of Greenland is a decision for the people of Greenland and Denmark. ' Carney urged NATO allies, particularly the United States, to honor their commitments. As of now, there has been no official response from the. European countries regarding these tariffs, but the situation is being closely monitored.

US Congressional Delegation and Local Perspectives

Coinciding with Trump's statements, a bipartisan US Congressional delegation was visiting Greenland, while the 11-member team, led by Democratic Senator Chris Coons, included Republican Senators Thom Tillis and Lisa Murkowski. The delegation met with Greenlandic parliamentarians, as well as Danish Prime Minister Mette Frederiksen and Greenlandic Prime Minister Jens-Frederik Nielsen. The team's primary objective was to listen to the local populace and de-escalate tensions in Washington. Senator Coons stated that they were listening to the people of Greenland and would return with their opinions to help calm the situation, while greenlandic MP Aaja Chemnitz described the meeting as beneficial, emphasizing their need for friends and allies, as the US has been exerting pressure since 2019, marking a 'long race that isn't yet over.

Divisions Among US Lawmakers and Diplomatic Engagements

US lawmakers are divided on the issue of Greenland. Senator Murkowski has introduced a bill in Congress opposing the forced acquisition of Greenland, while another Republican Senator has introduced a bill in favor of its annexation. Trump's special envoy, Jeff Landry, informed Fox News that the US should engage directly with Greenland's leaders, not Denmark. He asserted that Trump is serious and a deal would be struck soon. Meanwhile, on Wednesday, Danish Foreign Minister Lars Løkke Rasmussen and Greenlandic Foreign Minister Vivian Motzfeldt met with US Vice President JD Vance and Secretary of State Marco Rubio at the White House. A Danish official told the BBC that while military action wasn't discussed, Trump's statements were being taken seriously.

European Solidarity and Military Presence

The discussions at the White House didn't result in any major agreement between Denmark, Greenland, and the United States. However, following the meeting, all three parties agreed to establish a joint working. Group to discuss issues related to Greenland, with meetings scheduled in the coming weeks. Danish Foreign Minister Rasmussen clearly stated that disagreements with the US persist and their positions are quite different. He unequivocally rejected Trump's idea of buying or occupying Greenland, stating that 'it isn't in Denmark's interest, while ' Nevertheless, he also indicated that both countries are prepared to enhance security cooperation in the Arctic, including the possibility of establishing more US military bases in Greenland.

European nations have stepped up in support of Denmark. France, Germany, Sweden, Norway, Finland, the Netherlands, and the United Kingdom are deploying a limited number of troops to Greenland as part of a surveillance mission. The German Foreign Ministry announced that it would send a team of 13 personnel to support Denmark in ensuring security in the region. Similarly, Swedish Prime Minister Ulf Kristersson stated on Wednesday that several officers from the Swedish Armed Forces had been sent to Greenland to participate in a military exercise at Denmark's request, demonstrating European solidarity.

Trump's 'Tariff Diplomacy' and Warning of Military Options

Trump maintains that Greenland is crucial for US national security due to the presence of Russian and Chinese vessels. He told the New York Times that a mere treaty or lease wouldn't suffice; 'full control' is required to gain more advantages. White House spokesperson Caroline Leavitt stated on Tuesday that her team is exploring various methods to gain control over Greenland, including the use of military force.

US Vice President JD Vance also warned that if Greenland's security isn't taken seriously, the US 'will have to do something. ' Trump, in his second term, has been employing tariff threats as a tool for geopolitical. Use, using them to address issues such as preventing wars, asserting regional control, or enhancing national security. Media reports indicate that these threats are often used for negotiation or to exert pressure, while trump has previously threatened tariffs to halt the India-Pakistan conflict, on countries trading with Iran, on nations purchasing oil from Russia (including an extra 25% tariff on India in 2025), and on Latin American countries like Venezuela/Colombia over drugs/immigration issues.

Legal and Political Hurdles to Greenland's Acquisition by the US

Trump has been advocating for the annexation (purchase or occupation) of Greenland by the US since 2019, and this issue has gained significant traction in his second term, while however, legally, it isn't a straightforward process. Both Greenland and the US are NATO members, and according to international law, one NATO country can't legally occupy another NATO country. Such an act would be entirely illegal and in violation of the NATO treaty, as Article 5 of NATO states that an attack on one member is an attack on all. Greenland is currently an autonomous territory of Denmark.

Under the 2009 Self-Government Act, the people of Greenland can become independent through a referendum, but this also requires the approval of the Danish Parliament. A 2025 survey indicated that 85% of Greenlanders opposed US occupation. The minor defense agreement of 1951 was updated in 2004 to include Greenland's semi-autonomous government, ensuring that US military activities don't adversely affect local populations.

This agreement originated during World War II when Denmark was under Nazi occupation, and its Washington envoy signed a defense agreement for Greenland with the US, fearing Nazi use of Greenland for attacks on America. At that time, US troops established several bases on the island and removed German forces. After the war, the US retained some bases, but most were closed after the Cold War. Currently, the US only maintains the Pituffik Space Base, which conducts missile tracking. Denmark also has a light presence, such as special forces with dog sleds. Recently, Denmark has pledged to upgrade its base.

Greenland's Strategic Importance

Greenland possesses a unique geographical position, situated between North America and Europe, near the mid-Atlantic Ocean, making it a crucial location in the mid-Atlantic region, while its strategic military importance is immense, as it's vital for military and missile surveillance between Europe and Russia. The US already operates the Thule Air Base there, which is essential for missile warning and monitoring Russian/Chinese activities, while with increasing Russian and Chinese activities in the Arctic region, US influence over Greenland is sought to strengthen its geopolitical foothold in the area.

Greenland is believed to hold significant reserves of rare minerals, oil, gas, and rare earth elements, which have immense future economic and technological value. China controls 70-90% of the production of these elements, prompting the US to seek to reduce its dependence. Global warming is causing Arctic ice to melt, opening new shipping routes, while control over Greenland would help the US assert dominance over these routes and counter the growing influence of Russia and China in the Arctic. The US considers Greenland a 'front line' of its national security, aiming to preempt potential future threats by establishing influence there, while this dispute is adding a new chapter to global geopolitics, with potentially far-reaching consequences.

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