Tariffs as Leverage: Trump’s Greenland Gambit Triggers European Backlash
A fresh transatlantic rift is unfolding after Donald Trump announced sweeping tariff measures against eight European nations, openly linking trade penalties to their opposition to American control over Greenland.
The move has sparked emergency diplomatic consultations in Europe and street protests in both Denmark and Greenland, underscoring the geopolitical sensitivity of the Arctic island.
Under the announcement, a 10 per cent tariff will be imposed from February 1 on imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland.
Trump has warned that the levy could escalate to 25 per cent by June 1 if no “deal” is reached—language widely interpreted in European capitals as economic pressure aimed at forcing negotiations over Greenland’s future.
European Union ambassadors are now set to convene an emergency meeting, as anger simmers across the region.
In Copenhagen and Nuuk, thousands demonstrated against Washington’s proposal, viewing it as an assault on sovereignty rather than a conventional trade dispute.
On Sunday, the eight affected countries issued a rare joint statement condemning the Trump administration’s approach.
Expressing solidarity with Denmark and the people of Greenland, they warned that linking territorial ambitions to tariffs risks pushing transatlantic relations into what they called a “dangerous downward spiral.”
The statement stressed that any dialogue must rest on respect for sovereignty and territorial integrity—principles Europe says are non-negotiable.
“Tariff threats undermine transatlantic relations,” the countries said, signalling that economic coercion would only harden resistance.
Tensions have been further sharpened by the Trump administration’s criticism of a limited European military presence in Greenland.
The countries involved clarified that the deployment—comprising a small number of personnel—was strictly for a Danish-led training drill, “Arctic Endurance,” and posed no threat.
They described it as a routine exercise to prepare for operations in extreme Arctic conditions.
In London, UK Culture Secretary Lisa Nandy struck a cautious tone, urging restraint. Speaking to Sky News, she said Greenland’s status was “non-negotiable” but emphasised the need to avoid escalating rhetoric.
“It is in our collective interest to work together and not start a war of words,” she said.
Beyond diplomacy, the tariff threat has introduced uncertainty into recently concluded trade arrangements.
Analysts note that Trump’s move effectively calls into question the US–UK trade agreement signed in May and the broader US–EU trade framework finalised in July.
The political fallout may soon reach Brussels’ legislative chamber. The European Parliament is reportedly considering suspending its work on the EU–US trade deal, which was scheduled for a key vote later this month to reduce a range of EU import duties.
As Europe weighs its response, Trump’s strategy has laid bare a broader shift: tariffs are no longer merely economic instruments, but bargaining chips in high-stakes geopolitical negotiations—an approach that could reshape alliances well beyond Greenland.
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