Greenland Deal: Trade War Looms Over US Tariff Threat

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European leaders have strongly criticised US President Donald Trump’s threat to impose punitive tariffs on allied countries over their opposition to his bid to take control of Greenland, warning that the move risks damaging transatlantic relations and destabilising the NATO alliance.

In a joint statement issued on Sunday, Britain, Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden said Trump’s tariff threats “undermine transatlantic relations and risk a dangerous downward spiral.”

The statement followed Trump’s declaration that he would impose tariffs of up to 25 percent on goods from the countries unless Greenland, an autonomous territory of Denmark, is ceded to the United States.

Trump announced that a 10 percent tariff would take effect from February 1, rising to 25 percent from June 1, and would remain in place “until such time as a deal is reached for the complete and total purchase of Greenland,” according to a post on his Truth Social platform.

Denmark’s Foreign Minister, Lars Løkke Rasmussen, said the ultimatum threatened the international order and the future of NATO, describing the situation as a challenge to “the world order as we know it.”

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NATO Secretary General Mark Rutte confirmed that he had spoken with Trump about security issues in Greenland and the wider Arctic region, adding that further discussions were expected at the Davos summit later this week.

The European Council said it would convene an emergency summit of EU leaders in the coming days, following consultations among EU ambassadors in Brussels.

The tariff threat has also raised questions about the future of a trade deal reached last July under which most EU exports to the United States were to face a 15 percent levy.

German Foreign Minister Johann Wadephul said it was unclear whether that agreement could survive the current standoff.

In France, aides to President Emmanuel Macron said the European Union could consider activating its “anti-coercion instrument”  a measure never previously used if Washington proceeds with the additional tariffs.

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The mechanism allows the EU to restrict imports of goods and services in response to economic pressure from third countries.

Trump has repeatedly expressed his desire to bring Greenland under US control since returning to office for a second term, arguing that it is vital to American national security.

He and senior officials have claimed Denmark would be unable to defend the Arctic territory in the event of aggression from Russia or China.

Denmark and several European NATO allies have rejected that assertion and recently deployed small numbers of troops to Greenland for joint military exercises, to which the United States was invited.

Public opposition to Trump’s proposal has also been visible in Greenland and Denmark, where thousands of people took part in protests over the weekend.

Some demonstrators wore caps bearing slogans such as “Make America Go Away,” in a pointed response to Trump’s campaign rhetoric.

European leaders across the political spectrum have condemned the tariff threat. British Prime Minister Keir Starmer called it “completely wrong” and said he intended to raise the issue directly with Trump.

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Dutch Foreign Minister David van Weel described the move as “inexplicable” and likened it to economic “blackmail.” Even Italian Prime Minister Giorgia Meloni, considered one of Trump’s closest allies in Europe, warned that imposing new sanctions would be a mistake and said she had conveyed her concerns to the US president in a phone call.

France’s Agriculture Minister Annie Genevard cautioned that an escalation of tariffs would also harm the United States, including American farmers and manufacturers.

Norway, which is also targeted by the proposed tariffs but is not an EU member, said it was not currently considering retaliatory measures.

The dispute has heightened fears of a broader trade conflict between the United States and its European allies, adding to tensions within NATO at a time of growing geopolitical uncertainty.

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