(C) Axios

[NUKK, Greenland] – The geopolitical standoff over Greenland has spiraled into a full-blown trade war as U.S. President Donald Trump announced a series of punitive tariffs against eight European nations that opposed his plan to annex the Danish territory. The move has plunged the Atlantic alliance into its deepest crisis in decades, threatening to dismantle long-standing security and economic ties.

Retaliation via Trade

On Saturday, President Trump announced via Truth Social that a 10% tariff will be imposed on all goods imported from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, effective February 1. The rate is scheduled to jump to 25% by June 1.

The President justified the measures by accusing these nations of playing a "dangerous game" by deploying troops to Greenland to counter U.S. interests. "These tariffs will remain in place until a full and total agreement on the purchase of Greenland is reached," Trump stated.

European Defiance

European leaders, who previously described their military presence in Greenland as a move to bolster "Arctic security," reacted with indignation. Danish Foreign Minister Lars Løkke Rasmussen expressed shock, noting that Denmark believed it was aligning with U.S. requests for increased Arctic engagement.

French President Emmanuel Macron condemned the move, stating, "Blackmail and threats, whether in Ukraine or Greenland, will not affect us. Europe will respond in a united and coordinated manner." Similarly, U.S. allies like the U.K. and Sweden emphasized that they would not succumb to intimidation.

Economic Fallout: End of the Turnberry Agreement?

The sudden tariff hike threatens to void last year’s hard-won trade deals. Jacob Funk Kirkegaard, a senior fellow at the Bruegel think tank, warned that this marks the "effective end of the Turnberry Trade Agreement," moving the relationship from a trade dispute toward "a choice between a trade war or an actual conflict."

The European Parliament has already signaled it will delay the ratification of the Turnberry Agreement. Manfred Weber, leader of the European People’s Party (EPP), asserted that the U.S. should not be granted formal trade approval while issuing such threats.

Protests in Greenland

As diplomatic tensions flared, thousands took to the streets in Nuuk, Greenland’s capital, marking the largest protest in the territory's history. Citizens marched toward the U.S. Consulate, chanting, "Greenland is not for sale."

While EU ambassadors prepare for an emergency meeting in Brussels this Sunday, experts suggest that while Europe is ready to defend its sovereignty, the necessity of the U.S. for collective defense through NATO may lead to a search for a diplomatic exit strategy before the February 1 deadline.