What: On Saturday night, US President Donald Trump posted on Truth Social that he would impose 10 percent tariffs on several countries if the US is not allowed to buy Greenland. The tariffs will take effect from February 1st and increase to 25 percent on June 1st.
Which countries? Trump is threatening tariffs on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland. All of them have expressed their support in recent days and sent some military personnel to Greenland. According to Trump, “the countries are playing a very dangerous game.” However, it is unclear how the US could impose tariffs on individual EU countries, since the EU is a customs union with the same tariff rates.
Reactions: The move has been met with strong reactions, massive criticism and prompted crisis management from the EU.
"We will not let ourselves be blackmailed," says Prime Minister Ulf Kristersson (M). Danish Foreign Minister Lars Løkke Rasmussen says that the purpose of the increased military presence in Greenland is to increase security in the Arctic, something Trump has demanded. European Commission President Ursula von der Leyen supports Denmark and Greenland and calls for dialogue. Democrats in the US promise to try to block the tariffs. There has been mostly silence from Trump's Republican camp.
What happens now? 27 EU ambassadors have been called to an emergency meeting on Greenland on Sunday. Many believe that a direct consequence will be that the European Parliament will pause the trade agreement with the US that was to be approved on Wednesday. On Monday, the World Economic Forum in Davos also starts, where Trump is scheduled to speak this week. Tariffs are likely to be discussed.
Will the tariffs go into effect? This is not the first time Trump has threatened or imposed tariffs. But he has also backed down. The difference now is that the purpose of the tariffs is to take over a territory. It is considered a red line for the EU and voices are calling for a tough response. Trump may also face challenges in the US judiciary, where the issue of tariffs is under review. Whether it leads to a trade war is too early to say, according to senior economist Robert Bergqvist at SEB.
I hope that there is a willingness to negotiate from both the US and Europe to find a solution, he says.
Why now? Trump has long wanted Greenland to belong to the United States. In recent weeks, after the US captured Venezuelan leader Nicolás Maduro, he further specified his demands. Trump has also not ruled out a military operation. This week, representatives from Denmark, Greenland and the United States met to discuss the issue - but agreed that they disagreed. On Saturday, large protests were held in Denmark and Greenland against Trump’s plans. A delegation of US congressmen - both Republicans and Democrats - also traveled to Copenhagen to show their support.
Corrected: In a previous version, the wrong day was given for when the World Economic Forum in Davos begins.
