US President Donald Trump has escalated a geopolitical dispute over Greenland by announcing a new wave of tariffs against eight NATO allies. In a post on Truth Social, Trump stated that a 10% tariff will be imposed on all goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, effective February 1, 2026. The tariffs are a direct response to those nations sending military personnel to Greenland on what Trump called a reconnaissance mission "for purposes unknown."
The President declared that if a deal for the "complete and total purchase of Greenland" is not reached by June 1, 2026, the tariffs will increase to 25%. He framed the acquisition as essential for US national security, calling the European troop movements "a very dangerous situation." Analysts from the Kobeissi Letter estimate the new tariffs will impact approximately $1.2 trillion in annual bilateral trade, warning the US-EU trade war has "escalated to a whole new level."
The announcement drew swift condemnation from European leaders. European Commission President Ursula von der Leyen rejected the move, stating the EU chooses "partnership and cooperation." Danish Prime Minister Mette Frederiksen emphasized that Greenland's defense is a "common concern" for NATO. Concurrently, US Senators Chris Coons and Lisa Murkowski traveled to Copenhagen to de-escalate tensions, with Coons stating, "There are no pressing security threats to Greenland."
The news has sparked concerns within the cryptocurrency market, given Bitcoin's historical sensitivity to trade war developments. In 2025, following Trump's initial tariff announcements, BTC's price plunged from an all-time high near $110,000 to below $75,000. However, in the immediate aftermath of this latest announcement, Bitcoin's price showed little movement, trading steadily around $95,000.
Behind the strategy, Trump is reportedly leveraging a law granting presidents emergency economic powers to enact the tariffs, a move the Supreme Court may rule on as early as the following week. This event marks a significant intensification in the ongoing trade conflict, with Greenland positioned as the central strategic battleground.
