Trade War Looms as EU Responds to Trump’s Greenland Tariff Threat

European Union ambassadors are preparing to hold an emergency meeting after US President Donald Trump announced plans to impose new tariffs on several European countries over their opposition to US efforts to acquire Greenland. The meeting of representatives from all 27 EU member states was called by Cyprus, which currently holds the rotating EU presidency, and is scheduled to take place on Sunday evening.

Trump said he would introduce a 10% tariff on goods exported to the United States from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting on 1 February, with the rate rising to 25% from 1 June. According to the US president, the measures would remain in force until an agreement is reached allowing the “complete and total purchase” of Greenland by the United States.

In a series of statements posted on Truth Social, Trump accused the eight European countries of sending forces to Greenland “for purposes unknown” and described the situation as a threat to global security. The remarks appeared to refer to a recent deployment of NATO troops to Greenland, carried out at Denmark’s request amid growing concern over US rhetoric about the Arctic territory. Greenland is an autonomous territory within the Kingdom of Denmark.

Denmark’s foreign minister, Lars Løkke Rasmussen, said the US president’s comments were unexpected, noting that Copenhagen had held what he described as constructive talks earlier in the week with US Vice President JD Vance and Secretary of State Marco Rubio. Rasmussen stressed that the increased military presence was intended to strengthen Arctic security and was being carried out transparently with NATO allies.

The tariff threat triggered a sharp reaction across Europe. French President Emmanuel Macron said no form of pressure or intimidation would alter Europe’s position on Greenland, calling the proposed tariffs unacceptable. He underlined that Denmark is both an EU and NATO member and that European support for Greenland is rooted in respect for sovereignty, international law, and collective security. Sweden’s Prime Minister Ulf Kristersson warned that Europe would not allow itself to be blackmailed, while Norway’s Prime Minister Jonas Gahr Støre said threats have no place among allies.

In a joint statement, European Council President António Costa and European Commission President Ursula von der Leyen warned that tariffs would damage transatlantic relations and risk setting off a dangerous downward spiral. They stressed that dialogue remains essential and said the EU would remain united and coordinated in defending its sovereignty.

The dispute has also put the EU-US trade agreement agreed last August under strain. Several senior members of the European Parliament indicated that ratification of the deal could be paused or halted altogether. Manfred Weber, leader of the European People’s Party, said the legal approval process may need to be suspended, while Bernd Lange, chair of the European Parliament’s trade committee, said continued progress was difficult to imagine under the current circumstances. The Socialists and Democrats group echoed that view, saying there could be no trade deal while tariff threats remain.

European leaders were caught off guard by Trump’s announcement, which came as many of them were in Paraguay for the signing of a major trade agreement between the EU and the Mercosur bloc of South American countries. EU Trade Commissioner Maroš Šefčovič warned that escalating tariffs could trigger serious economic consequences and said Europe should avoid actions that would deepen the confrontation. He added that the EU-Mercosur deal could help offset potential damage from higher US tariffs.

The issue has also prompted reactions in the United States. Senate Democratic leader Chuck Schumer said his party would introduce legislation aimed at blocking the tariffs, describing them as reckless and harmful to both the US economy and relations with key allies. In the House of Representatives, senior Democrat Gregory Meeks announced plans to seek a resolution to terminate what he called illegal and absurd tariffs, while some Republican lawmakers also voiced concern and called for Congress to reassert its authority over trade policy.

British Prime Minister Keir Starmer said Trump’s decision to impose tariffs on allies over Greenland was completely wrong. He reiterated that Greenland’s future should be decided by its people and Denmark, and warned that penalizing allies for collective NATO security efforts undermines cooperation. UK opposition leaders from across the political spectrum also criticized the move, warning of higher costs for businesses and consumers.

The row has extended to Greenland itself, where large demonstrations have taken place in Nuuk and in Danish cities under the slogan “Greenland is not for sale.” Greenland’s Minerals Minister Naaja H. Nathanielsen said she was encouraged by international solidarity and expressed hope that diplomacy and cooperation among allies would prevail.

European officials have also warned that the dispute risks distracting attention from other pressing security challenges, including Russia’s war in Ukraine. EU foreign policy chief Kaja Kallas said divisions among allies only benefit Moscow and Beijing and stressed that any concerns over Arctic security should be addressed within NATO.

Despite the escalating rhetoric, some analysts described Trump’s tariff threats as a negotiating tactic linked to the recent European troop deployments. They noted that the EU’s common trade policy limits Washington’s ability to target individual member states and argued that cooperation, rather than economic pressure, remains the most effective way to address security concerns in the Arctic.