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Trump Proposes “Taming Tax” on UK and EU Over Greenland Dispute

by Lanka Sara Editor
January 18, 2026
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President Donald Trump has announced that, starting 1 February 2026, the United States will impose a 10 % tariff on imports from the United Kingdom and seven key European countries unless an agreement is reached for the U.S. to acquire Greenland  a largely autonomous territory of Denmark.

The duties would rise to 25 % from 1 June and remain in place until the “Complete and Total purchase of Greenland” is finalized, Trump said in a post on his social media platform.

Trump framed the move as a response to what he described as the presence of European military personnel in Greenland, a mission he claims lacks clear purpose and could threaten U.S. security though allies reject that interpretation.

Denmark and Greenland have made clear that Greenland is not for sale. European leaders stress that military deployments on the island are aimed at strengthening security cooperation, not confronting the United States.

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Strong International Pushback

European leaders swiftly condemned the tariff threat. French President Emmanuel Macron called the proposal “unacceptable” and affirmed that Europe would respond in a united and coordinated fashion.  UK Prime Minister Keir Starmer labelled the move “completely wrong,” urging the United States to respect NATO allies’ collective security efforts rather than penalise them.

EU officials and other NATO partners warned that imposing punitive levies on allies could damage transatlantic relations and risk an economic backlash.

Domestic Opposition in the U.S.

In Washington, a bipartisan group of lawmakers has also criticised Trump’s tactics, arguing that they could undermine longstanding alliances with Denmark and other European partners. Some legislators stress that Arctic security, including cooperation in Greenland, should be handled collaboratively through NATO frameworks rather than through economic coercion.

Context of the Dispute

Trump’s tariff announcement comes amid his renewed interest in Greenland, which he has intermittently suggested the U.S. should seek to purchase or control for strategic reasons. Denmark and Greenlandic authorities have consistently rejected these ideas. European troops and defence officials have increased their presence on the island as part of broader security assessments and exercises in the Arctic region.

Trump is expected to attend the Davos Economic Forum in Switzerland later this month, where discussions with European leaders may further touch on the tensions now affecting both trade policy and diplomatic relations.

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