Trump Imposes Escalating Tariffs on European Countries Until Greenland Purchase Deal is Reached: A Controversial Economic Move in Trump Term
In a bold and controversial economic move, US President Donald Trump announced on Saturday, January 17, 2026, new tariffs of up to 25% on goods imported from eight European countries, stipulating that they would only be lifted upon reaching an agreement allowing the United States to "purchase Greenland," a territory politically belonging to Denmark. This announcement comes amid a revival of Trump's personal interest in Greenland, which he first raised during his first term, but which now takes on an escalating economic dimension that threatens to spark new trade tensions with America's traditional allies in Europe, amid concerns about its impact on the global economy and international relations. Tariff Details: A Gradual and Comprehensive Escalation
In a lengthy post on his social media platform Truth Social, Trump explained that the tariffs would take effect on February 1, 2026, at an initial rate of 10% on "any and all goods exported to the United States" from the targeted countries. He added that this rate would automatically increase to 25% on June 1, 2026, and would remain in place "until an agreement is reached for the full and comprehensive purchase of Greenland." The countries affected by the tariffs include Denmark (which has sovereignty over Greenland), Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland—all members of the European Union or NATO allies, making the measure all the more controversial due to its targeting of strategic partners.
Trump described these countries as "playing a very dangerous game" and having "taken an unacceptable and unsustainable level of risk." These tariffs are expected to affect a wide range of products, from German cars and French wine to Dutch agricultural products and Finnish technology, potentially causing billions of dollars in economic losses for European economies and raising import costs for American consumers.
Historical Context: Greenland on Trump’s Agenda Since 2019
Trump’s interest in Greenland dates back to his first term in 2019, when he proposed purchasing the island from Denmark. He based his argument on its strategic importance as the world’s largest island (2.16 million km²), its wealth of natural resources such as lithium, oil, and gas, and its geopolitical location, which makes it a crucial point in the Arctic race. Denmark vehemently rejected the offer at the time, calling it “absurd,” which led to the cancellation of Trump’s official visit to Copenhagen.
With Trump’s return to the White House in 2025, he revived the idea, but with more aggressive economic leverage. Observers believe these tariffs are not merely economic punishment, but part of a broader strategy to bolster American influence in the Arctic, especially as melting ice opens up new trade routes and vast natural resources. Greenland, which has enjoyed self-governance since 2009, again rejected any discussion of its sale, reaffirming its Danish sovereignty.
European Reactions: Collective Rejection and Economic Concerns
The announcement sparked immediate condemnation from the targeted countries. The Danish Prime Minister described the measure as "unacceptable blackmail," warning that it "threatens international alliances." In Germany, the Chancellor warned of a "new trade war" that could impact the European economy, while Britain expressed its "disappointment" with its traditional ally. The European Union announced it was considering retaliatory measures, such as tariffs on American products, reminiscent of the "trade wars" of the first Trump administration with China and Europe.
Economically, the tariffs could lead to higher prices for goods in America and job losses in Europe, with estimates suggesting losses reaching billions of dollars. The World Trade Organization (WTO) could become a battleground, as linking tariffs to political demands violates international trade rules.
Geopolitical Implications: Will Economic Pressure Work?
This move is seen as an attempt by Trump to impose a robust “economic foreign policy,” leveraging the strength of the US economy to achieve geopolitical objectives. However, experts like Jonathan Elms of Chatham House warn that it could weaken transatlantic alliances, particularly in the face of Russian and Chinese challenges in the Arctic. Greenland itself, which enjoys self-governance, has confirmed its rejection of any deal, emphasizing its independence and its ties with Denmark.
Trump’s announcement represents an unprecedented escalation in the use of economic tools for political ends, which could reshape US-European relations and trigger a new trade crisis. While Trump insists that this “friendly pressure” is essential for America’s security, European countries remain steadfast in their refusal, foreshadowing difficult months of negotiations and heightened tensions.
