Trump imposes 10% tariffs on Europe over Greenland standoff

He also promised that the tariff will increase over the year if no agreement to buy Greenland is reach.
Trump Tariff on Greenland

It's obvious that President Donald Trump is retaliating against the Kingdom of Denmark, Greenland, and the entire European Union (EU) countries' standoff regarding the proposed buyout of Greenland with a 10% tariff. Trump took to his social media platform, Truth Social, to announce that he has placed the EU countries on a 10% tariff that'll take effect on February 1, linking the reasons to his long-standing demand that the U.S. be allowed to purchase Greenland.

This is not the first time Trump has fought to take over Greenland. He's done so during his first tenure in office, but the Danish government and Greenlandic lawmakers have refused to sell the island to the United States, stating that the island is not for sale. Greenland is a semiautonomous Danish territory, and Trump is eyeing the territory because he believes that the territory’s geostrategic position and minerals make it vital for U.S. and global security.

He also claims that European troop deployments and influence in Greenland pose a risk, though NATO allies dispute this claim. Greenland is currently part of the Kingdom of Denmark; it is not for sale under Danish or Greenlandic law. Both governments have rejected Trump's offers. However, Trump is using the tariff as intended leverage to force a Greenland sale or negotiation. Trump has repeatedly insisted Greenland must be “returned” or sold to the U.S.

He portrayed Greenland as vulnerable, claiming that countries that have major powers like China and Russia are paying close attention to the island. He questioned whether Denmark has the capacity to protect the territory, mockingly suggesting its defences amount to little more than a pair of dogsled patrols. According to Trump, only the United States, under his leadership, has the power and leverage to secure Greenland effectively and succeed in what he described as a high-stakes geopolitical contest.

The 10% Tariff

The 10% tariff affects “any and all goods” from these eight European countries: Denmark, Norway, Sweden, France, Germany, the United Kingdom (UK), the Netherlands, and Finland. “This tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland,” Trump wrote on Truth Social. Trump says the tariffs will rise to 25% on June 1, 2026, unless a deal is reached for the “complete and total purchase of Greenland”.

Denmark is Greenland’s sovereign state partner, Norway, Sweden, and Finland are Nordic partners, and France, Germany, the Netherlands, and the United Kingdom are major EU powers and NATO allies. Trump has said these countries have opposed U.S. control or have “journeyed” to Greenland with uncertain intentions.

He also argued that the United States has spent decades effectively supporting Denmark, the European Union, and other allies by allowing them access to American markets without tariffs or comparable compensation and said that this long-standing imbalance can no longer continue. In his view, Denmark now owes something in return, framing the issue as one that extends beyond economics and into global stability. He says, “World peace is at stake.”

This tariff escalation comes as the U.S. and EU had recently agreed on a trade understanding that included a 15% automobile tariff and exemptions on some goods as part of a landmark trade deal. While the EU lawmakers are threatening to suspend ratification of the trade deal over the tariff threat, the U.S. Trade Rep. Jamieson Greer is suggesting that the Greenland tariff issue should be separated from that trade deal to keep negotiations on track.

France’s President Emmanuel Macron called the tariff threats unacceptable and coercive. EU leaders warn such tariffs risk damaging transatlantic relations and could trigger retaliation. European Parliament trade officials are contemplating an EU anti-coercion response to counter such political tariffs. Even Greenland’s government and Denmark are firmly standing on their ground that the territory is not for sale, not to the United States or to any other country.

However, it's worth mentioning that it's unclear whether Trump can legally impose these tariffs under current U.S. trade law because they might rely on emergency economic powers that face legal challenges. The real question here is how could the U.S. impose tariffs on individual EU countries given the EU’s single market customs union? Raising tariffs to 25% could increase costs for U.S. importers and consumers and disrupt global supply chains.

What do you think about this situation? Let us know your thoughts in the comment section.

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About the author

Temmy Samuel
Temmy Samuel is an aspiring accountant, financial writer, and journalist, and the publisher of Finng Daily, where he covers financial and business reporting, including fintech, and corporate trends.