Trump's 10 percent tariff over Greenland: European Union halts ratification of US-EU trade deal

BRUSSELS/WASHINGTON, Jan 18 (INS): Europe is bracing for a sharp transatlantic confrontation after US President Donald Trump threatened to impose a sweeping 10 percent tariff on goods from European countries that opposed his controversial plan to acquire Greenland.

In a dramatic countermeasure, the European Union announced it has halted the ratification process of the long-negotiated US-EU trade deal, effectively freezing one of the most significant economic agreements in recent history.

In a post on Truth Social, Trump had said on Saturday the 10 percent tariffs would come into effect on February ?1 on Denmark, Norway, ?Sweden, France, Germany, Great Britain, the Netherlands and Finland. ?Those tariffs would increase to 25 percent ?on June 1 and would continue until a deal is reached for the United States ?to undertake the "complete and total purchase" of Greenland.

Trump renewed his push to purchase Greenland, a semi-autonomous territory of Denmark, citing strategic military and resource interests.

European leaders, led by Denmark and supported by France and Germany, have categorically rejected the proposal, calling it “an affront to sovereignty” and “a destabilizing move in the Arctic region.” Their opposition prompted Trump to lash out, warning that European nations would face punitive tariffs if they continued to block his ambitions.

The proposed 10 percent tariff would apply broadly to European exports, ranging from automobiles and machinery to agricultural goods. Economists warn that such measures could severely disrupt trade flows at a time when both sides are struggling to stabilize post-pandemic growth. European officials described the threat as “economic coercion” and vowed to respond with “firm and proportionate measures.”

“The European Union will not be intimidated into compromising its principles of sovereignty and international law,” said EU Trade Commissioner Elise Dupont in Brussels. “Halting the ratification of the US-EU trade deal is a necessary step to protect Europe’s interests and send a clear signal that bullying tactics will not succeed.”

Threat to NATO alliance

Greenland, with its vast reserves of rare earth minerals and strategic location in the Arctic, has increasingly become a focal point of global competition. Trump’s insistence on acquiring the territory has raised alarm not only in Europe but also among NATO allies, who fear that the dispute could fracture unity within the alliance.

Danish Prime Minister Mette Frederiksen reiterated that “Greenland is not for sale” and accused Washington of undermining regional stability.

Analysts note that Trump’s move reflects a broader strategy to secure resource-rich territories and expand US influence in the Arctic, where Russia and China have already made significant inroads. However, the unilateral approach has left European Capitals scrambling to defend their sovereignty while preparing for economic fallout.

The suspension of the US-EU trade deal ratification marks one of the most serious rifts in transatlantic relations in decades. The agreement, which had been hailed as a cornerstone for deepening economic cooperation, now lies in limbo. European diplomats privately acknowledge that the freeze is intended as leverage, signaling that trade cannot be divorced from political trust.

In Washington, administration officials defended Trump’s stance, arguing that Europe’s opposition to the Greenland plan was “short-sighted” and “contrary to shared security interests.” Yet critics within the US warned that escalating tariffs could backfire, hurting American consumers and businesses reliant on European imports.

As both sides dig in, the prospect of a trade war looms large. European leaders are expected to convene an emergency summit in Brussels later this week to coordinate their response, while Washington prepares detailed tariff schedules. The coming days may determine whether diplomacy can salvage the relationship or whether the dispute over Greenland will trigger a full-scale economic confrontation.

For now, Europe has drawn a red line: sovereignty is not negotiable, and trade cooperation cannot proceed under threats. The transatlantic alliance, once seen as unshakable, faces one of its most severe tests in the modern era