U.S. President Donald Trump has said he will “100%” carry out his threat to impose tariffs tied to opposition against U.S. ambitions over Greenland, doubling down on a move that has already triggered sharp pushback from the European Union, which says it is prepared to protect its economic interests.
Trump’s remarks come amid escalating tensions with European allies after Washington linked trade penalties to political resistance over Greenland, an autonomous territory within the Kingdom of Denmark. He said countries that stand in the way of what he described as U.S. strategic interests should expect firm economic consequences, leaving little room for compromise.
European leaders responded swiftly, warning that the use of tariffs as political leverage undermines long-standing alliances and international trade norms. EU officials said the bloc would respond “decisively and proportionately” if U.S. measures are enacted, signaling the risk of retaliatory tariffs and a widening trade dispute.
Denmark reiterated that Greenland is not for sale and that its future will be determined by the people of Greenland in line with international law. Greenland’s political leaders have also rejected any external pressure, stressing self-determination and democratic choice.
Trade experts caution that the standoff could disrupt transatlantic supply chains and weigh on markets already facing uncertainty. Industries on both sides of the Atlantic warned that politicizing tariffs could raise costs for consumers and businesses while eroding trust among partners.
In Washington, administration officials framed the threat as a negotiating tactic to assert U.S. leverage in the Arctic, a region of growing strategic importance due to climate change, resources, and new shipping routes. Critics, however, argue the approach risks isolating the U.S. and weakening cooperation on security and climate priorities.
With the EU signaling readiness to respond and Trump vowing to proceed, diplomats say the dispute has become a broader test of transatlantic relations, one that could set precedents for how trade policy is wielded in geopolitical disputes.