US tariffs raise fears of economic spiral as Europe rallies behind Greenland

A day after US President Donald Trump launched a sharp tariff offensive, eight European nations issued a joint statement on Sunday expressing full solidarity with Denmark and Greenland, warning that Washington’s trade threats risk triggering a dangerous downward spiral in transatlantic relations.

According to Reuters, Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and Britain said they stood united behind the Kingdom of Denmark and the people of Greenland after Trump threatened tariffs while reviving calls for US control of the Arctic island.

“We stand in full solidarity with the Kingdom of Denmark and the people of Greenland,” the joint statement said. The countries underlined shared security interests in the Arctic, stressing that NATO members remain committed to safeguarding the region. “As members of NATO, we are committed to strengthening Arctic security as a shared transatlantic interest,” the statement added.

On Saturday, Trump announced a 10 per cent tariff on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, effective February 1, 2026. He warned the levy would rise to 25 per cent from June 1, 2026, if no agreement is reached on Greenland.

The European statement criticised the tariff threat, cautioning that economic pressure could erode long-standing alliances. “Tariff threats undermine transatlantic relations and risk a dangerous downward spiral,” it said. Norwegian Prime Minister Jonas Gahr Støre echoed those concerns, urging restraint and warning against escalating trade tensions.
“We should be very careful not to have a trade war that spirals out of control. I don’t think anyone benefits from that,” Støre told broadcaster NRK, stressing the need for dialogue and cooperation. The coordinated European response reflects growing unease across the continent over both Arctic security and the potential economic fallout of a widening trade dispute with Washington.

Trump’s tariff threat over Greenland

Announcing the tariffs, Trump claimed the United States had been “subsidising” European nations for centuries and said it was time for Denmark to “give back,” warning that “world peace is at stake.” He argued that strong measures were necessary to protect global security.

European Council President Antonio Costa said the European Union would respond firmly, stressing that defending international law was non-negotiable. “The European Union will always be very firm in defending international law,” Costa told reporters, adding that he was coordinating an EU-wide response.

European Commission President Ursula von der Leyen also warned that the tariffs would damage transatlantic ties and could fuel a dangerous downward spiral.

Trump has increasingly linked tariffs to geopolitical demands, arguing that Greenland is vital to US and global security and claiming China and Russia covet the island. He has insisted that tariffs would remain in place until a deal for Greenland’s “complete and total purchase” is reached, citing its strategic importance to advanced US defence systems and Arctic security.

The move follows a pattern in Trump’s diplomacy, with his administration previously using tariffs and economic pressure against countries over issues ranging from Russian oil purchases to trade with Iran.