Trump imposes taxes on Americans to force Denmark to sell Greenland

On Jan. 17, 2026, Trump announced 10% tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting Feb. 1, 2026. The tariffs will increase to 25% on Jun. 1, 2026, and they'll remain in place until a deal is reached for the 'Complete and Total purchase of Greenland.' These are taxes paid by American importers—and ultimately American consumers—when they buy products from these eight countries, not penalties paid by European governments. Trump is using tariff authority that Congress granted presidents for national security purposes, stretching that power to pursue territorial acquisition through economic coercion against American wallets.

All eight targeted countries are NATO allies bound by the treaty's Article 5 mutual defense clause, which treats an attack on one member as an attack on all. The tariffs specifically target countries that sent troops to Greenland or publicly opposed Trump's acquisition push. Trump accused them of playing a 'very dangerous game' by opposing U.S. control of Greenland. This marks the first time a U.S. president has weaponized trade policy against NATO allies to pursue territorial expansion, raising fundamental questions about the alliance's future and whether economic coercion replaces collective defense as the organizing principle of U.S.-European relations.

Greenland is a semi-autonomous territory of Denmark with approximately 57,000 residents, about 90% of whom are Inuit. The island spans 836,000 square miles—roughly three times the size of 🤠Texas—but most of it is covered by an ice sheet. Greenland has significant deposits of rare earth minerals critical for technology manufacturing, offshore oil and gas reserves, and strategic military importance in the Arctic as shipping routes open due to climate change. Denmark maintains sovereignty over Greenland's foreign affairs and defense, but Greenland has self-governance in most domestic matters under a 2009 Self-Government Act. Greenlanders have repeatedly and emphatically stated they don't want to be sold to any country.

Trump argues that Greenland is essential for the 'Golden Dome' missile defense system he wants to build and claims Russia and China might try to seize the island if the U.S. doesn't acquire it first. He asserts the U.S. has been trying to buy Greenland for over 150 years, referencing an 1867 proposal and a 1946 offer of $100 million that Denmark rejected. The U.S. already maintains Pituffik Space Base (formerly Thule Air Base) in northwest Greenland under a 1951 agreement with Denmark, giving it a military presence without owning the territory. Defense experts question whether territorial acquisition is necessary for missile defense when the existing base arrangement already provides strategic access.

Denmark's Prime Minister MFMette Frederiksen issued an unequivocal warning that any U.S. attempt to take Greenland by force would 'be the end of NATO.' She stated: 'If the United States chooses to attack another NATO country militarily, then everything stops.' This warning reflects the fundamental NATO principle that member nations defend each other against aggression—a principle that collapses if the alliance's most powerful member becomes the aggressor. Frederiksen traveled to Berlin, Paris, and Brussels to coordinate European resistance and garner diplomatic support, signaling Denmark's determination to treat Trump's threats as a genuine crisis rather than rhetorical bluster.

Seven European countries—France, Germany, Sweden, Norway, Finland, the Netherlands, and the United Kingdom—sent military personnel to Greenland in the days before Trump's tariff announcement in a coordinated show of solidarity with Denmark. French President Emmanuel Macron announced 'The first French military units are already on their way,' framing the deployment as a demonstration that NATO allies stand together when one member faces pressure. The deployments were characterized as routine military exercises, but the timing and coordination sent an unmistakable message: European allies will not facilitate U.S. territorial expansion and are prepared to demonstrate military support for Denmark's sovereignty. This marks the first time European NATO members have deployed forces in response to pressure from the United States rather than from an external adversary.

European leaders across the political spectrum rejected Trump's threats in remarkably unified language. Swedish Prime Minister UKUlf Kristersson declared 'We won't let ourselves be intimidated.' French President Macron stated 'no intimidation nor threat will influence us.' Seven European leaders—from France, Germany, Sweden, Norway, Finland, the Netherlands, and the United Kingdom—issued a joint statement proclaiming that Greenland 'belongs to its people' and 'It is for Denmark and Greenland, and them only, to decide.' The coordinated response reveals European determination to present a united front against what they view as an unprecedented threat to sovereignty and international law from their most important ally.

European Council President ACAntónio Costa announced the EU will 'coordinate a joint response' to the tariffs and vowed the union would 'be very firm in defending international law.' He criticized Trump's tactics as a threat to 'prosperity,' arguing 'we must open markets, not close them.' The EU is preparing retaliatory tariffs targeting American goods, likely focusing on products from politically sensitive states to maximize pressure on Trump. This coordination represents the EU acting as a unified economic bloc to counter U.S. pressure, potentially triggering a transatlantic trade war that could reshape global commerce.

A top Danish official reported that a 'fundamental disagreement' over Greenland persists after White House talks on Jan. 16, 2026, between Danish representatives and Vice President JVJD Vance and Secretary of State Marco Rubio. The two sides agreed to create a working group to discuss ways to address differences, but this appears to be a diplomatic gesture that papers over irreconcilable positions: Trump demands acquisition, while Denmark and Greenland insist the territory isn't for sale. The working group may provide a face-saving mechanism to de-escalate tensions temporarily, but it doesn't resolve the core conflict over sovereignty.

Denmark announced it will increase military spending in the North Atlantic by $2 billion, though officials said the spending had been planned for some time. The announcement was accelerated in response to Trump's threats, signaling Denmark's commitment to defend its territory and deter U.S. aggression. The $2 billion represents a substantial investment for a nation of 5.9 million people and demonstrates that even smaller NATO allies are willing to bear significant costs to resist what they perceive as American bullying and protect their sovereignty.