Trump’s Greenland Gambit Risks Dangerous Trade War with Allies

Lisa Chang, Asia Pacific Correspondent
2 Min Read
⏱️ 2 min read

As the world watches in disbelief, US President Donald Trump has escalated his pursuit of Greenland by threatening to impose tariffs on several European nations that have voiced opposition to his plans. In a move that has left diplomats reeling, Trump has declared that 10% tariffs will be slapped on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland starting on 1st February. These tariffs would then rise to 25% on 1st June if a deal to sell Greenland to the US is not reached.

This brazen attempt to strong-arm America’s allies has prompted an urgent response from European leaders. Eight nations – Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the UK – have issued a joint statement condemning Trump’s actions as a threat that “risks a dangerous downward spiral” in transatlantic relations. The statement affirms the countries’ “solidarity” with Denmark and the people of Greenland.

Norwegian Prime Minister Jonas Gahr Støre has warned against an “out of control” trade war, while German Finance Minister Lar Klingbeil has declared that Germany and its European partners “will not be blackmailed” by the US president. French President Emmanuel Macron has gone even further, branding Trump’s move as “unacceptable” and stating that “no intimidation nor threat will influence us.”

The fallout from this crisis extends beyond Europe. Northern Ireland’s First Minister Michelle O’Neill has described Trump’s actions as “deeply concerning,” given the close economic ties between Ireland and the US. The former NATO chief, Anders Fogh Rasmussen, has even accused the president of making “gangster-style threats” against Greenland, warning that the US’s ambitions there could undermine the global order.

As EU diplomats convene an emergency meeting to coordinate a response, the stakes have never been higher. Trump’s reckless pursuit of Greenland appears to be spiralling into a full-blown trade war with America’s closest allies. The world watches anxiously, wondering whether cooler heads can prevail and avert an economic and diplomatic catastrophe.

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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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