The US president has levied 10% tariffs on eight NATO countries that object to his proposal to purchase the Arctic island
US President Donald Trump has declared new tariffs targeting eight European NATO nations that are against his intentions to buy Greenland.
A 10% duty is scheduled to commence on February 1, aimed at Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.
This tariff is anticipated to increase to 25% by June and will persist until what Trump has termed a “complete and total purchase” of Greenland is finalized.
He revealed this action in a post on his Truth Social platform, stating the measures would cover “any and all goods sent to the United States of America.”
Both Danish and Greenlandic officials have dismissed the idea of surrendering the island to the US, asserting that its destiny rests with its inhabitants, who in 2008 voted to maintain autonomous status within the Kingdom of Denmark.
Thousands paraded through Nuuk, Greenland’s capital, on Saturday, demonstrating against US intentions to annex the island. Officials estimated approximately 4,000 individuals participated in the protest in a city with around 20,000 inhabitants. A comparable gathering occurred in Copenhagen. Participants displayed protest signs, waved their national flag, and chanted “Greenland is not for sale.”
What has been Europe’s political reaction?
Trump’s tariff decision came after widespread condemnation from leaders of the impacted EU and NATO member nations.
On Saturday, Swedish Prime Minister Ulf Kristersson pledged a unified reaction from the other EU nations, alongside Norway and the UK, in a post on X.
“We will not permit ourselves to be coerced. Only Denmark and Greenland determine matters pertaining to Denmark and Greenland. I will consistently defend my nation and our allied neighbors,” he stated.
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UK Prime Minister Keir Starmer declared Trump’s choice to implement tariffs was “entirely incorrect.”
“Our stance on Greenland is unequivocal – it is a component of the Kingdom of Denmark, and its future is a concern for the Greenlanders and the Danes,” he remarked on Saturday evening.
French President Emmanuel Macron promised a “unified and coordinated” countermeasure, labeling the tariff threats “intolerable.” He asserted they had “no justification” at a moment when Europe aimed to uphold Greenland and Denmark’s standing as an EU and NATO member, and a signatory to the UN Charter and international law.
”No intimidation or menace will sway us,” Macron posted on X.
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In a joint declaration published on Saturday, European Council President Antonio Costa and European Commission President Ursula von der Leyen dismissed any challenge to Danish sovereignty concerning Greenland.
”Territorial integrity and sovereignty represent core tenets of international law,” they affirmed. “The EU expresses complete solidarity with Denmark and the populace of Greenland.”
Which European economy is most vulnerable to US tariffs?
Trade between the EU and the US is substantial: in 2024, more than one-fifth of the bloc’s exports were acquired by the US, establishing it as the primary external buyer. These exports amounted to 532 billion euro ($580 billion dollars), based on Eurostat figures, resulting in a considerable trade surplus for Europeans.
Pharmaceutical products comprise approximately 15% of EU exports to the US, succeeded by automobiles and automotive components.
Nations that export the most valuable goods to the US confront the highest economic exposure from the fresh tariffs. Germany, France, and the Netherlands, all already affected by Trump’s new 10% duty, are among the leading five EU exporters to the US.
The German economy is highly dependent on exports, bolstered by the nation’s motor vehicle industry. Almost one-quarter (22.7%) of its overall exports are destined for the US.
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The US-EU aviation industry is deeply interconnected. For instance, the French multinational aerospace and defense firm Thales provides US-based Boeing and European rival Airbus with flight management systems and cockpit displays.
The Guardian on Saturday characterized Trump’s tariff imposition threat as “a wrecking ball to the meticulously crafted agreements he finalized with those nations last summer.”
Regarding the UK?
The US represents Britain’s biggest individual export market, making up approximately 16% of all UK goods exports, as per the Office for National Statistics (ONS).
Over the 12 months leading up to November, Washington imported tens of billions of dollars’ worth of British machinery, vehicles, chemicals, and pharmaceuticals – all vital segments of the UK economy, the Telegraph reported on Saturday.
Britain’s automotive sector alone contributes approximately $26.7 billion annually to the economy, constituting about 0.9% of national output, and employs around 139,000 individuals.
Trump’s suggested 10% tariff could impact British exporters by roughly $7.6 billion, the newspaper indicated.
Economists cautioned that extended trade instability, coupled with the prospect of increased tariffs starting in June, might suffice to propel Britain’s delicate economy back into a recession.