The European Union warns Trump of a dangerous spiral over Greenland tariffs

The European Union warns Trump of a dangerous spiral over Greenland tariffs

January 17, 2026
8 mins read
The European Union is responding strongly to Trump's tariffs related to the purchase of Greenland, warning of serious economic repercussions and negative effects on transatlantic relations.

In a new escalation of transatlantic trade and political tensions, the European Union issued a strongly worded warning on Saturday, describing the latest steps announced by US President Donald Trump as potentially plunging the world into a "dangerous spiral." This firm stance followed Trump's announcement of new tariffs on eight European countries, a clear pressure tactic aimed at forcing Denmark and the EU to the negotiating table to finalize the purchase of Greenland.

A threat to transatlantic relations

European Commission President Ursula von der Leyen and European Council President António Costa issued a joint statement asserting that the use of tariffs as a political weapon not only threatens the global economy but also directly undermines the foundations of the historic relationship between the United States and Europe. The statement indicated that "imposing tariffs will weaken transatlantic relations and threatens to plunge the world into a dangerous downward spiral," emphasizing that Europe will not stand idly by and will remain "united, coordinated, and committed to defending its sovereignty.".

The context of ambitions in Greenland: historical and strategic background

The United States' desire to control Greenland is not a recent development; its roots extend back to the mid-20th century due to the island's immense geopolitical importance. Greenland's strategic location between the Arctic and the Atlantic Ocean makes it vital to US national security and the monitoring of waterways, in addition to its vast natural resources and rare minerals, which are increasingly important in modern technology industries. However, attempting to link commercial matters to the issue of territorial sovereignty and the sale of land is unprecedented in modern diplomatic relations between allies, as Denmark and Greenland consider the sale of the island non-negotiable.

Potential economic and political repercussions

This escalation carries significant economic risks that extend beyond Europe and the United States. Experts believe that a return to "trade wars" and the imposition of reciprocal tariffs will inevitably lead to higher prices for consumers and disrupt global supply chains that are still recovering from previous crises. Regionally, this situation presents European countries with a real test of their unity in the face of external pressures, while internationally, this approach could encourage other global powers to use trade as a tool to extract geopolitical gains, thus undermining the rules-based global trading system.

absolute European solidarity

The swift European move came days after fruitless talks in Washington between officials from the United States, Denmark, and Greenland. In closing their statement, the two European officials affirmed: "The European Union expresses its full solidarity with Denmark and the people of Greenland. Dialogue remains essential, and we are committed to building on the process initiated last week between the Kingdom of Denmark and the United States," a clear indication of their rejection of dictation and their adherence to diplomatic solutions that respect national sovereignty.

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