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20 Jan 2026 18:19
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  •   Home > News > International

    Tensions over Greenland escalate as US threatens tariffs after European troop deployment

    Tensions between the United States and Greenland's allies reach a new high, with threats of increasing tariffs after European troops were sent to the island.


    Tensions between the United States and NATO countries that are backing Greenland have reached a new high in recent days over Donald Trump's growing threats to take over the island.

    The US president has vowed to implement a wave of increasing tariffs against eight European countries, after they deployed small numbers of troops to Greenland.

    Here's why the Trump administration wants to take Greenland and where the impasse is at.

    Why does Trump want Greenland?

    Greenland has a population of about 57,000 people and about 80 per cent of the territory is ice.

    But Trump has his sights set on the island — the world's largest that's not a continent — and has not ruled out taking it by force.

    Greenland's location between Russia and North America makes it strategically important to the US.

    [greenland map]

    The US president has repeatedly said Greenland is vital to US security, not only for its location, but its large mineral deposits.

    And he believes Denmark can't be relied upon to counter potential Russian and Chinese aggression.

    "Greenland is very important for the national security, including of Denmark," he told reporters in the Oval Office last week.

    "And the problem is, there's not a thing that Denmark can do about it if Russia or China wants to occupy Greenland, but there's everything we can do. You found that out last week with Venezuela."

    In a Truth Social post on Sunday night, local time, Trump said NATO had been telling Denmark for 20 years it had to "get the Russian threat away from Greenland".

    "Unfortunately, Denmark has been unable to do anything about it. Now it is time, and it will be done!!!" he said.

    Denmark's Foreign Minister Lars Løkke Rasmussen said his country shared Trump's concerns of a changing security environment in the Arctic and he wanted to work with the US to counter threats.

    "The big difference is whether that must lead to a situation where the US acquires Greenland, and that is absolutely not necessary," he said.

    "[We] should focus on how to address the American security concerns, while at the same time respecting the red lines of the Kingdom of Denmark."

    He also countered Trump's claims the territory was under imminent threat from China, saying it had been about a decade since a Chinese warship was spotted near Greenland.

    Threats to increase tariffs

    On Saturday, Trump vowed to implement a wave of increasing tariffs until the US was allowed to buy Greenland.

    He threatened to charge a 10 per cent import tax, starting in February, on goods from Norway, the UK and six EU members — Denmark, Sweden, France, Germany, the Netherlands and Finland.

    These nations are opposing American control of Greenland and are already subject to US-imposed tariffs between 10 and 15 per cent.

    The tariffs would increase up to 25 per cent from June and continue until a deal was reached for the US to buy Greenland, Trump said.

    In response, those eight countries issued a joint statement saying the US president's plan risked a "dangerous downward spiral".

    "Tariff threats undermine transatlantic relations … we will continue to stand united and coordinated in our response," it said.

    "We stand in full solidarity with the Kingdom of Denmark and the people of Greenland."

    Danish Prime Minister Mette Frederiksen said in a written statement she was heartened by the consistent messages from the rest of the continent, adding: "Europe will not be blackmailed".

    The US's tariff threats also cast doubt over trade deals it struck with Britain in May and the EU in July, which the European Parliament now looks likely to suspend its work on.

    European troops sent to Greenland

    The eight countries threatened by increasing tariffs had sent small numbers of military personnel to Greenland in recent days, at Denmark's request.

    While the modest deployments were to a military exercise the US was also invited to, it sent a strong message of support after officials from the US, Denmark and Greenland met and failed to resolve tensions.

    White House spokesperson Karoline Leavitt said the presence of European troops would not affect Trump's "goal of the acquisition of Greenland at all".

    Denmark also said it would establish a "larger and more permanent" NATO presence to secure Greenland, sending additional aircraft, ships and soldiers to the island.

    Marc Jacobsen, an associate professor at the Royal Danish Defence College, said the European military deployment to Greenland sent two messages to the Trump administration.

    "One is to deter, is to show that, 'If you decide to do something militarily, we're ready to defend Greenland,'" he said.

    "And the other purpose is to say, 'Well, we take your critique seriously, we increase our presence, take care of our sovereignty, and improve surveillance over Greenland.'"

    Leaders to meet at emergency summit

    EU ambassadors agreed on Sunday to intensify efforts to dissuade Trump from imposing higher tariffs on European allies, while also preparing retaliatory measures should the taxes go ahead.

    European leaders are also set to discuss options at an emergency summit in Brussels on Thursday.

    One option is a package of tariffs on 93 billion euros ($162 billion) of US imports that could automatically kick in on February 6, after a six-month suspension.

    The EU is also facing calls to implement a never-before-used range of economic countermeasures known as the "Anti-Coercion Instrument" (ACI).

    The ACI could limit access to public tenders, investments or banking activity or restrict trade in services, in which the US has a surplus with the bloc, including in digital services.

    The tariff package appeared to command broader support as a first response than anti-coercion measures, Reuters has reported.

    Rasmussen has also said Denmark would continue to focus on diplomacy, referring to an agreement Denmark, Greenland and the US made on Wednesday to establish a working group.

    "The US is also more than the US president … there are also checks and balances in American society," he said.

    Trump's escalating campaign for Greenland has raised alarm within the US, too.

    In a post on X, North Carolina US senator and senior Republican Thom Tillis said the president's actions were "bad for the US" and "great for Putin, Xi and other adversaries who want to see NATO divided".

    The EU's efforts at dialogue are likely to be a key theme of the World Economic Forum in Davos, Switzerland, this week.

    Trump is expected to deliver a keynote address on Wednesday in his first appearance at the event in six years.

    ABC/wires

    © 2026 ABC Australian Broadcasting Corporation. All rights reserved

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