President Donald Trump has reignited his long-standing interest in acquiring Greenland, the semi-autonomous Danish territory, by threatening sweeping tariffs on several European nations unless a deal is reached for the U.S. to gain "complete and total" control of the Arctic island.
In a Truth Social post on January 17, 2026, Trump announced that starting February 1, a 10% tariff would apply to imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. The rate would rise to 25% on June 1 and remain in effect "until such time as a Deal is reached for the Complete and Total purchase of Greenland." He framed the move as leverage to secure the territory, citing U.S. national security needs in the Arctic amid growing activity from Russia and China.
The proposal, which Trump first floated during his previous term, has drawn sharp rebukes from European leaders. Danish and Greenlandic officials have repeatedly rejected any sale, with Greenland's government emphasizing the island's right to self-determination. In recent updates, Greenland's leadership stated the territory must prepare for potential U.S. military force, while Russia's foreign minister drew parallels to the annexation of Crimea.
As Trump prepared to address the World Economic Forum in Davos on January 21, 2026, his trip faced a brief delay due to a minor issue with Air Force One, though he proceeded on another aircraft. Treasury Secretary Scott Bessent, speaking in Davos, urged European counterparts to "take a deep breath" and avoid escalation, warning that retaliatory moves would be "very unwise." He distinguished the Greenland issue from broader trade talks, encouraging dialogue while asserting U.S. resolve on national security.
European Commission President Ursula von der Leyen addressed the European Parliament, calling Trump's tariff threats a "mistake" that violates existing agreements and undermines trust among allies. She stressed Europe's readiness to act if necessary, highlighting tools like retaliatory tariffs on up to $100 billion in U.S. exports (potentially targeting Boeing aircraft, bourbon, and services), enhanced defense measures, or restrictions on U.S. bases. EU lawmakers have frozen ratification of a key U.S. trade deal in response, and an emergency summit was planned in Brussels to coordinate a unified stance.
Market reactions reflected the uncertainty: Wall Street saw sharp declines, with the Dow dropping 870 points on January 20, though futures later edged higher. Gold prices rallied as investors sought safe havens amid fears of a transatlantic trade dispute.
Trump, when asked how far he would go to secure Greenland, replied ambiguously: “You’ll find out.” He expressed optimism that "things are going to work out pretty well" and dismissed concerns that the threats would derail broader economic ties.
The standoff tests NATO alliances and risks igniting a trade war between the U.S. and its closest partners, with implications for global security, Arctic resources, and economic stability. As discussions intensify at Davos, the coming weeks will reveal whether diplomacy or escalation prevails in this unprecedented geopolitical and economic clash.
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