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Trump launches trade war against NATO after European countries sent troops to Greenland amid his takeover plan

Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
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Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
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January 17, 2026, 2:28 PM ET
 The Danish warship Knud Rasmussen is moored in the harbor of Nuuk, Greenland, on Jan. 17, 2026.
The Danish warship Knud Rasmussen is moored in the harbor of Nuuk, Greenland, on Jan. 17, 2026. ulia Wäschenbach/picture alliance via Getty Images

President Donald Trump escalated his campaign to gain control over Greenland after several European countries deployed troops to the semi-autonomous Danish territory.

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In a social media post on Saturday, he said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will be hit with a 10% tariff starting on Feb. 1 that will rise to 25% on June 1, until a “Deal is reached for the Complete and Total purchase of Greenland.”

The announcement came after those NATO allies sent troops to Greenland this past week, ostensibly for training purposes, at the request of Denmark.

European officials have said it was meant to show they’re serious about security in the Arctic as Trump claims China and Russia are threatening Greenland, and not to defend against a possible U.S. Invasion. But Trump alluded to the troop deployment in his post Saturday.

“On top of everything else, Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland have journeyed to Greenland, for purposes unknown,” he wrote. “This is a very dangerous situation for the Safety, Security, and Survival of our Planet. These Countries, who are
playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable.”

Trump has consistently refused to rule out using the U.S. Military in his Greenland plans, while the administration has also left open the possibility of buying the island.

That’s despite estimates that extracting oil and rare earth minerals from Greenland would cost $1 trillion and take decades to yield any returns.

French President Emmanuel Macron defended his country’s troop deployment to Greenland, citing France’s commitment to the independence of nations as well as Arctic security.

“No intimidation or threat will influence us—neither in Ukraine, nor in Greenland, nor anywhere else in the world when we are confronted with such situations,” he posted on X. “Tariff threats are unacceptable and have no place in this context. Europeans will respond in a united and coordinated manner should they be confirmed. We will ensure that European sovereignty is upheld.”

Trump’s latest post suggests he’s leaning toward leveraging trade relations for a purchase rather than conquering Greenland outright with troops and Navy ships.

Denmark has warned that any U.S. Attack on Greenland or another NATO ally would effectively end the trans-Atlantic alliance after nearly 80 years.

“I and most Americans disagree with the President’s heavy handedness,” Rep. Don Bacon, R-Neb., said in response to Trump’s new tariff. “He is threatening NATO members, which is shameful. The fact that Greenland is part of NATO’s umbrella gives the President all he needs to put more bases there. This also reinforces why Supreme Court needs to rule his tariff actions Unconstitutional. I have legislation that restores Congress’ primacy over tariffs.”

Another Republican, Sen. Thom Tillis, also criticized the tariffs, saying they will hurt America and its allies. “It’s great for Putin, Xi and other adversaries who want to see NATO divided. The fact that a small handful of ‘advisors’ are actively pushing for coercive action to seize territory of an ally is beyond stupid,” he posted on X.

A White House meeting with officials from Denmark and Greenland failed to result in any diplomatic breakthrough with the administration refusing to budge on its stance.

While Greenland has offered the U.S. Military and commercial access, Trump has insisted that only a total takeover can secure the island and ensure national security.

“The United States has been trying to do this transaction for over 150 years. Many Presidents have tried, and for good reason, but Denmark has always refused,” he said on Saturday. “Now, because of The Golden Dome, and Modern Day Weapons Systems, both Offensive and Defensive, the need to ACQUIRE is especially important.”

Trump’s tariff threat also renews trade tensions with the European Union after reaching a deal in July that set a 15% tariff on most EU products and obligated it to invest hundreds of billions of dollars in the U.S.

Meanwhile, the Supreme Court to due to rule on Trump’s ability to impose tariffs under the International Emergency Economic Powers Act, which is the linchpin of his global tariffs.

A decision that strikes down the so-called reciprocal duties could limit Trump’s leverage in an expanded trade war and threaten the deals he has already made.

While Trump didn’t cite which law his NATO tariffs would fall under, his emphasis Saturday on national security priorities suggests that the latest levies will not rely on IEEPA.

“Hundreds of Billions of Dollars are currently being spent on Security Programs having to do with ‘The Dome,’ including for the possible protection of Canada, and this very brilliant, but highly complex system can only work at its maximum potential and efficiency, because of angles, metes, and bounds, if this Land is included in it,” he added.

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About the Author
Jason Ma
By Jason MaWeekend Editor

Jason Ma is the weekend editor at Coins2Day, where he covers markets, the economy, finance, and housing.

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