President Trump announced a 10% tariff on eight European nations, set to begin February 1, 2026, in an unprecedented attempt to pressure Denmark into selling Greenland to the United States. The affected countries include Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. If no deal is reached by June 1, the tariff rate will jump to 25%.
Trump leverages tariffs as diplomatic weapon, threatening 10% duties on eight European allies to force Denmark’s hand on Greenland purchase.
The announcement came via social media on Saturday, January 18, 2026, catching European leaders off guard. Trump demanded the “complete and total purchase of Greenland,” a self-governing territory within the Kingdom of Denmark. While he promised not to use military force, the tariff threat represents a different kind of pressure on America’s closest allies. Tariffs raise prices and can act as an invisible tax on affected goods, reducing consumer buying power.
However, after a productive meeting with NATO Secretary General Mark Rutte, President Trump announced he was backing off the tariffs and canceled those scheduled to go into effect on February 1. The eight European nations quickly issued a joint statement supporting Denmark and Greenland’s sovereignty. Bernd Lange, who chairs the European Parliament‘s trade committee, emphasized their “unshakable commitment” to territorial integrity. The European Parliament responded by suspending ratification of a US trade agreement that had been reached just months earlier in July 2026. European officials warned that these “tariff threats undermine transatlantic relations and risk a dangerous downward spiral.”
The new tariffs will stack on top of existing ones, creating a heavy burden for European economies. Most affected countries already face 15% reciprocal tariffs, while the United Kingdom has a 10% tariff. The Trump administration plans to use the International Emergency Economic Powers Act as legal justification, though the Supreme Court is expected to rule on similar tariff authority between January and July 2026.
Financial markets reacted negatively to the announcement. The Dow Jones dropped 870 points on the day Trump revealed his tariff plan, though markets later recovered about half those losses. The administration has framed Greenland negotiations as part of broader Arctic strategy discussions with NATO Secretary General Mark Rutte.
The situation reveals how trade policy has become a tool for political demands, testing the limits of presidential authority and straining relationships with European partners who thought such dramatic moves were unlikely between longtime allies. European Union officials are considering reintroducing previously adopted retaliatory tariffs that could cover up to €93 billion of U.S. goods across agricultural, industrial, and consumer sectors.
