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Donald Trump Threatens New Tariffs on European Allies Over Greenland Dispute

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Washington: US President Donald Trump has intensified tensions with key European allies by threatening a fresh round of trade penalties after several nations rejected Washington’s demand to acquire Greenland, an autonomous territory of Denmark.

In a post on his social media platform Truth Social, Trump announced plans to impose an additional 10 per cent import duty starting February 1 on goods from eight countries — Denmark, the United Kingdom, France, Germany, Norway, Sweden, Finland and the Netherlands. These nations are already facing earlier US trade restrictions.

According to Trump, the tariffs would rise sharply to 25 per cent from June 1 and would remain in force until the United States is permitted to purchase Greenland. He reiterated that US ownership of the Arctic island was non-negotiable, despite repeated statements from both Danish and Greenlandic leaders that the territory is not for sale.

Greenland at the Centre of a Growing Rift

Trump has long argued that Greenland’s strategic location and vast mineral resources make it critical to American security interests. He has previously declined to rule out the use of force, a stance that has alarmed European governments. In response to rising concerns, several European nations have reportedly deployed additional military personnel to the island at Denmark’s request.

Public sentiment in the US, however, appears unconvinced. A recent Reuters/Ipsos poll found that fewer than 20 per cent of Americans support acquiring Greenland.

Demonstrations were held on Saturday in both Denmark and Greenland, where protesters demanded that the territory’s future be decided by its own people and condemned external pressure.

Strong Pushback From Europe

European leaders reacted swiftly to Trump’s tariff threat. Denmark’s Foreign Minister Lars Løkke Rasmussen said the announcement was unexpected and warned that trade pressure on allies risked destabilising long-standing partnerships.

UK Prime Minister Keir Starmer took an unusually direct stance, calling the move “completely wrong” and saying London would raise the issue with Washington. Leaders of the European Commission and European Council issued coordinated statements affirming full solidarity with Denmark and Greenland, warning that trade retaliation could damage transatlantic relations.

Officials from France, Germany, Norway and Sweden echoed those concerns, stressing that trade measures should not be used as leverage in territorial disputes. Cyprus, which currently holds the rotating presidency of the European Union, announced plans to convene an emergency meeting of EU ambassadors.

Trade and Legal Uncertainty

The latest threat has cast doubt on provisional trade arrangements reached last year between the US and both the European Union and the UK, which had set baseline tariffs of 15 per cent on European goods and 10 per cent on most British exports.

Trade analysts warned that selectively targeting individual EU states could undermine broader agreements. William Reinsch, a senior trade expert at the Center for Strategic and International Studies, said the move could make European lawmakers reluctant to approve any future trade deal with Washington.

Trump’s use of tariffs as a diplomatic tool has also drawn scrutiny at home. The US Supreme Court is currently reviewing the legality of his sweeping tariff powers, a ruling that could have far-reaching consequences for global trade and executive authority.

Strategic Motives Questioned

While Trump maintains that Greenland is vital to counter growing Chinese and Russian influence in the Arctic, European officials note that the island already falls under NATO’s collective defence umbrella. The US operates the Pituffik Space Base in Greenland under a long-standing agreement that allows Washington to expand its military presence if needed.

This has led many in Europe to conclude that the push for ownership is driven less by security and more by territorial ambition. EU foreign policy chief Kaja Kallas warned that divisions among Western allies would only benefit rival powers.

Some US lawmakers have also voiced concern. Senators Jeanne Shaheen and Thom Tillis, who co-chair the Senate NATO Observer Group, said escalating trade pressure on allies would harm American businesses and weaken alliances.

Despite the escalating rhetoric, some analysts urged restraint. “Europe should avoid reacting too quickly,” said Carsten Brzeski of ING Research, suggesting that the threat may be a negotiating tactic rather than a fixed policy.

For now, Trump’s ultimatum has added a new layer of uncertainty to already strained transatlantic relations, with trade, security and alliance politics increasingly intertwined.

All news on Encounter News is computer-generated and sourced from third parties. Please read and verify carefully. We will not be responsible for any issues. 

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