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Reading: Transatlantic Tensions Rise as Trump Threatens Tariffs on European Allies
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Transatlantic Tensions Rise as Trump Threatens Tariffs on European Allies

Lisa Chang Avatar
Last updated: January 17, 2026 6:00 pm
Lisa Chang, Asia Pacific Correspondent
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In a move that is likely to escalate the ongoing trade tensions between the United States and its European allies, President Donald Trump has announced plans to impose tariffs on a number of countries over their opposition to Washington’s ambitions to gain control of Greenland, the semi-autonomous Danish territory.

Speaking to reporters at the White House, the president stated that eight countries – including the United Kingdom, Germany, France, and Italy – would face the new tariffs, which he described as a response to their refusal to support US efforts to acquire Greenland. The president’s comments come just months after his administration’s attempts to purchase the world’s largest island were rebuffed by the Danish government, a move that Trump characterised as “absurd” and “a terrible thing.”

“These countries have stood in our way, and now they’re going to pay,” the president said, adding that the tariffs would be “very substantial” and would target a range of industries, from automobiles to agricultural products. “Greenland is strategically very important to the United States, and we’re not going to let these European nations stand in our way.”

The announcement has sparked concern and condemnation from US allies, who have accused the Trump administration of using trade policy as a weapon to pursue its geopolitical ambitions. In a statement, the UK government described the proposed tariffs as “unacceptable” and vowed to work with its European partners to mount a robust response.

“We have made it clear to the US administration that we consider their attempts to acquire Greenland to be completely unacceptable,” said a spokesperson for the Foreign Office. “Now they are trying to punish us for standing up for our sovereignty and the integrity of the Kingdom of Denmark. This is not how allies should treat one another, and we will not back down in the face of these threats.”

The European Commission, the executive arm of the European Union, also condemned the president’s announcement, calling it a “reckless and counterproductive” move that would only serve to deepen the existing divisions between the US and its traditional partners.

“At a time when we should be working together to address the real challenges facing the global economy, the President is instead choosing to lash out at his allies,” said a spokesperson for the Commission. “This is not the way to conduct diplomacy, and we will not be bullied into submission.”

The proposed tariffs come at a delicate moment in the transatlantic relationship, with the US and the EU already engaged in a bitter dispute over a range of trade issues, including aircraft subsidies and the treatment of agricultural products. The latest development is likely to further strain these ties and could potentially escalate into a full-blown trade war between the two sides.

As the situation continues to unfold, it remains to be seen whether the Trump administration will follow through on its threats or whether cooler heads will prevail and the two sides will be able to find a diplomatic solution to the Greenland impasse. One thing is clear, however: the stakes are high, and the consequences of any escalation could be far-reaching for the global economy and the broader geopolitical landscape.

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Lisa Chang Avatar
ByLisa Chang, Asia Pacific Correspondent
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Lisa Chang is an Asia Pacific correspondent based in London, covering the region's political and economic developments with particular focus on China, Japan, and Southeast Asia. Fluent in Mandarin and Cantonese, she previously spent five years reporting from Hong Kong for the South China Morning Post. She holds a Master's in Asian Studies from SOAS.
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