Trump to Impose Tariffs on 8 European Nations Over Greenland

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(Bloomberg) — President Donald Trump announced a 10% tariff on goods from European countries rallying to Denmark’s side in his pursuit of Greenland, a dramatic escalation in the standoff that will further strain US ties with many of its closest allies. 

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Trump threatened in a social media post to impose the tariff Feb. 1 and raise the tariff to 25% in June unless and until “a Deal is reached for the Complete and Total purchase of Greenland.”

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The tariffs will apply to Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, he said. 

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The explosive move targets several members of the NATO alliance, which includes Denmark. Those countries now face the prospect of punitive tariffs from an ally seeking to pry loose territory within the bloc.

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“The Pandora’s box of tariffs has been reopened — and the stakes are higher, with an unprecedented level of brutality,” said Simone Tagliapietra, senior researcher at the Bruegel think tank in Brussels. “Europe now has no choice but to confront this hostile act with strength and without hesitation, including by resorting to its anti-coercion instruments.”

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It’s not immediately clear what legal authority Trump would use — and, in turn, whether the tariffs are certain to take effect — or how he would seek to apply individual new tariffs to EU member states. The White House didn’t immediately respond to a request for additional information. 

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Trump has relied on the International Emergency Economic Powers Act previously for similar threats. His use of that authority is the basis of a landmark Supreme Court case, with a ruling expected soon. The court’s ruling could upend Trump’s threat; one alternative the administration has weighed, so-called Section 122 powers, are capped at 15% tariffs for 150 days.

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Altogether, that raises questions about whether Trump will be able to enact the tariffs and for how long.

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Under a trade agreement struck in July, Washington imposed a 15% tariff on most goods the EU exports to the US and 50% on steel and aluminum, as well as on many derivative products that contain the metals. The European Parliament still hasn’t ratified that accord, which has angered the Trump administration.

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Trump’s move follows a week of meetings in Washington by Danish Foreign Minister Lars Lokke Rasmussen with top Trump administration figures and members of Congress, along with Greenland’s foreign minister, Vivian Motzfeldt, also participated.

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Denmark and Greenland remain in a stalemate with the US over the future of the world’s largest island, though officials this week agreed to set up a working group to manage the diplomatic dispute. Danish officials had no immediate comment on Trump’s tariff post. 

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His move also flies in the face of trade deals Trump has already struck, such as with the UK. His track record of tearing up agreements, or simply disregarding them, will hang over ongoing talks with other countries, such as Mexico and Canada, with whom Trump wants to rewrite the three-way deal he signed in his first term.