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Home Trading News Stock Market

Sell U.S. Greenland or get tariffs

January 18, 2026
in Stock Market
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Sell U.S. Greenland or get tariffs
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U.S.President Donald Trump arrives at Detroit Metropolitan Wayne County Airport, in Michigan, U.S., January 13, 2026.

Evelyn Hockstein | Reuters

Eight NATO members’ items despatched to the U.S. will face escalating tariffs “till such time as a Deal is reached for the Full and Complete buy of Greenland,” President Donald Trump introduced Saturday.

The tariffs focusing on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland will begin at 10% on Feb. 1, Trump wrote in a Fact Social publish.

The tariffs will shoot as much as 25% on June 1, the president mentioned.

The penalties would presumably stack on high of the present U.S. tariffs already levied on items from these nations.

Tariffs imposed by the U.S. on its allies already common about 15% on items from the European Union nations in Trump’s crosshairs and roughly 10% on imports from the UK, with charges various by sector.

In delicate areas corresponding to metals and sure autos, stacked measures have already pushed efficient tariffs into the mid-teens to mid-20% vary.

The imposition of tariffs on a number of members of the EU, which includes 27 nations, means the brand new tariffs would apply to all. Trump’s calls for now threaten the EU-U.S. commerce settlement struck in August.

Manfred Weber, a senior member of the European Parliament (MEP), mentioned the EU commerce cope with the U.S. is “not potential at this stage.”

“The EPP is in favour of the EU-U.S. commerce deal, however given Donald Trump’s threats concerning Greenland, approval is just not potential at this stage,” he wrote in a publish on X. “The 0% tariffs on U.S. merchandise should be placed on maintain.”

Ambassadors from the EU will convene for an emergency assembly on Sunday, Reuters reported. Cyprus, which holds the six-month rotating EU presidency, known as the assembly, which is about to begin at 5 p.m. native time (11 a.m. ET).

Tariff technique

Trump’s publish advised that the brand new tariffs on European allies are being imposed in response to the nations’ shifting troops to Greenland. They took that step because the Trump administration has floated using the U.S. navy as a part of its ramped-up efforts to accumulate the Danish territory.

The eight nations “have journeyed to Greenland, for functions unknown,” Trump wrote. “It is a very harmful scenario for the Security, Safety, and Survival of our Planet.”

A day earlier, Trump hinted that he could pursue a tariff technique on Greenland just like the one he used to drive international nations to decrease drug costs.

“I’ll do this for Greenland too. I’ll put a tariff on nations if they do not go together with Greenland, as a result of we’d like Greenland for nationwide safety,” he mentioned on the White Home on Friday.

Whereas the president didn’t cite particular authorized statutes in his Fact Social announcement for his newest strikes, it seems to reflect his controversial use of the Worldwide Emergency Financial Powers Act, a regulation that grants the president broad powers throughout an “uncommon and extraordinary risk.”

The Supreme Courtroom may rule as quickly as subsequent week on whether or not to strike down the tariffs imposed beneath that regulation and will instantly imperil this new tranche, successfully daring the judiciary to intervene in a contemporary commerce struggle.

Scott Lincicome, a commerce coverage scholar on the Cato Institute, warned Saturday that the brand new risk exposes the fragility of counting on unilateral offers relatively than binding treaties.

“Trump’s tariff announcement confirms… that his commerce offers could be modified on a whim and are unlikely to constrain his each day tariff impulses,” Lincicome mentioned in an announcement. “Right this moment’s risk underscores the empty justifications for Trump’s so-called ’emergency’ tariffs, which reveal the financial and geopolitical issues that unbounded government energy creates.”

Army personnel believed to be from the German armed Forces Bundeswehr disembark a constitution aircraft upon arrival at Nuuk worldwide airport on Jan. 16, 2026 in Nuuk, Greenland, the day after it arrived transporting Danish navy personnel.

Alessandro Rampazzo | AFP | Getty Pictures

European response

Throughout Europe, the focused nations responded with condemnation, characterizing the tariffs as a hostile act in opposition to shut navy allies that threatens the very cloth of the trans-Atlantic partnership.

European Fee President Ursula von der Leyen, who spearheads the bloc’s commerce coverage, issued a pointy rebuke to the White Home’s ultimatum, framing the tariffs not simply as a commerce dispute however as a check of Western values.

“We select partnership and cooperation,” von der Leyen wrote in a publish on Bluesky shortly after the announcement. “We select our companies. We select our individuals.”

Likewise, Danish Prime Minister Mette Frederiksen informed MS Now Saturday that Trump’s transfer got here as a “shock,” citing a current “constructive assembly” with U.S. Vice President JD Vance and Secretary of State Marco Rubio.

Frederiksen pushed again on Trump’s claims concerning troop actions, stating the elevated presence is strictly to “improve safety” in an Arctic area that’s “now not a low pressure space,” and was accomplished in “full transparency” with U.S. allies.

Different European leaders have been equally agency. European Council President Antonio Costa mentioned Saturday that the bloc is “coordinating a joint response” to the risk.

“The European Union will at all times be very agency in defending worldwide regulation, wherever it might be,” Costa mentioned at a press convention Saturday following the signing of a commerce settlement between the EU and South American nations in Paraguay.

French President Emmanuel Macron additionally weighed in, posting on X that “no intimidation nor risk will affect us.” Macron warned that “stabilizing forces have woke up” and vowed that France would stand agency alongside its neighbors.

Swedish Prime Minister Ulf Kristersson sternly rejected Trump’s tariff threats.

“We won’t permit ourselves to be blackmailed,” he wrote on X, including that “solely Denmark and Greenland resolve on points regarding Denmark and Greenland.”

EU’s international coverage chief Kaja Kallas warned that the brand new tariffs play proper into the palms of China and Russia.

“China and Russia should be having a discipline day. They’re those who profit from divisions amongst allies,” she wrote in a publish on X. “If Greenland’s safety is in danger, we will tackle this inside NATO.”

A protester takes half in an illustration to indicate help for Greenland in Copenhagen, Denmark, on Jan. 17, 2026.

Tom Little | Reuters

NATO pressure and authorized battles

Trump’s newest transfer places additional pressure on NATO, the 32-member navy alliance established after World Struggle II. The cornerstone of the alliance is an settlement that an assault on any single member is taken into account an assault on all of them.

European leaders have warned that any try by the U.S. to take Greenland by drive may spell the top of NATO.

Trump’s tariff announcement may sign he’s dropping the specter of navy motion to realize his longtime aim of taking on the island. Nevertheless it however ratchets up strain on Denmark and the remainder of Europe, which have flatly acknowledged that Greenland is just not on the market.

Some cautioned European leaders to keep away from reacting unexpectedly to Trump’s tariff risk.

“Simply ignore it and wait and see,” Carsten Brzeski, international head of macro at ING Analysis, informed Reuters. “Europe has proven that it’s going to not settle for every thing, and so the tariffs are literally already a step ahead in comparison with the threatened navy invasion.”

Lawmakers push for de-escalation

Because the White Home ramped up strain, a bipartisan U.S. congressional delegation in Copenhagen pushed again in opposition to Trump’s narrative.

“There aren’t any urgent safety threats to Greenland,” Sen. Chris Coons, D-Del., informed reporters Saturday morning.

Coons and Sen. Lisa Murkowski, R-Alaska, led the journey to “restore a way of belief” with Greenland, Coons mentioned.

The 2 senators disputed Trump’s characterization of European troop actions as a conspiracy to dam U.S. acquisition of the island, as an alternative praising the deployments as NATO companions “stepping up,” Coons mentioned, to safe the Excessive North in opposition to Russian aggression.

“Seeing lively coaching and deployments into one of many harshest, most distant locations on Earth… we should always take as an encouraging sign,” Coons mentioned.

Murkowski emphasised that regardless of the president’s assaults, help for Denmark stays robust throughout get together strains.

“You can not permit this to turn out to be a partisan matter,” she mentioned. “Help for our pals and allies… shouldn’t be.”

Likewise, Sens. Jeanne Shaheen, D-N.H., and Thom Tillis, R-N.C., each members of the Bipartisan Senate NATO Observer Group, warned that threatening tariffs on NATO would elevate prices for U.S. households whereas benefiting adversaries like Russia and China.

In a joint assertion, the lawmakers mentioned: “Persevering with down this path is unhealthy for America, unhealthy for American companies and unhealthy for America’s allies… At a time when many People are already involved about the price of dwelling, these tariffs would elevate costs for each households and companies.”

The lawmakers mentioned Danish and Greenlandic officers need to “accomplice with the USA,” urging the administration to “flip off the threats and activate diplomacy.”

— Terri Cullen contributed to this report.

That is breaking information. Please refresh for updates.



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