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21 Jan 2026 10:47
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  •   Home > News > International

    NATO allies warn Trump of 'dangerous downward spiral' over Greenland threats

    The US president says European countries will be hit with tariffs until a deal is struck that would see the Danish territory become an American possession.


    Eight European nations say they are standing in solidarity with the Kingdom of Denmark and the people of Greenland following US President Donald Trump's threat to annex the Arctic island.

    "As members of NATO, we are committed to strengthening Arctic security as a shared transatlantic interest," Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and Britain said in the statement.

    "Tariff threats undermine transatlantic relations and risk a dangerous downward spiral." 

    Italian Prime Minister Giorgio Meloni also said she had warned Mr Trump that tariffs against European nations were a "mistake".

    Mr Trump is threatening to charge a 10 per cent import tax starting in February on goods from eight European nations because of their opposition to American control of Greenland.

    He said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would face an increased tariff of 25 per cent, on June 1.

    Danish Prime Minister Mette Frederiksen said in a written statement that she was pleased with the consistent messages from the rest of the continent, adding: "Europe will not be blackmailed", a view echoed by Germany's finance minister and Sweden's prime minister.

    "It's blackmail what he's doing," Dutch Foreign Minister David van Weel said on Dutch television of Mr Trump's threat.

    Norwegian Prime Minister Jonas Gahr Stoere urged caution over a looming trade war after Mr Trump's tariff threat.

    "I think we should be very careful not to have a trade war that spirals out of control. I don't think anyone benefits from that," Mr Stoere told broadcaster NRK following a press conference.

    All the countries, already subject to tariffs of 10 and 15 per cent, have sent small numbers of military personnel to Greenland.

    An emergency meeting of EU diplomats was also scheduled to discuss the situation.

    UK says position 'non-negotiable'

    Asked about how the UK would respond to new tariffs, Culture Minister Lisa Nandy said allies needed to work with the United States to resolve the dispute.

    "Our position on Greenland is non-negotiable … It is in our collective interest to work together and not to start a war of words," she told Sky News.

    The tariff threats do though call into question trade deals the United States struck with Britain in May and the European Union in July.

    The limited agreements have already faced criticism about their lopsided nature, with the United States maintaining broad tariffs, while their partners are required to remove import duties.

    The European Parliament looks likely now to suspend its work on the EU-US trade deal struck in July. 

    The assembly had been due to vote on removing many EU import duties on January 26-27, but Manfred Weber, head of the European People's Party, the largest group in parliament, said in a post on X late on Saturday that approval was not possible for now.

    The EU is facing calls to implement a never-before-used range of economic counter-measures known as the "Anti-Coercion Instrument" as part of the response.

    A source close to French President Emmanuel Macron said he was working to coordinate a European response and was pushing for activation of the Anti-Coercion Instrument, which could limit access to public tenders in the bloc or restrict trade in services in which the US has a surplus with the EU.

    In social media posts, Bernd Lange, the German Social Democrat who chairs the European Parliament's trade committee, and Valerie Hayer, head of the centrist Renew Europe group, echoed his call, as did Germany's engineering association on Sunday.

    Tariffs 'great for Putin', top Republican says

    Amid growing European anger, NATO Secretary General Mark Rutte said he spoke with Mr Trump "regarding the security situation in Greenland and the Arctic" following the American leader's tariff threats against NATO allies.

    "We will continue working on this, and I look forward to seeing him in Davos later this week," Mr Rutte said on X, without giving details of his conversation.

    Mr Trump's escalating campaign for Greenland has also raised alarm at home. 

    [TWEET: Tillis]

    In a post on X, senior Republican and North Carolina US Senator Thom Tillis said the president's actions were likely to hurt the US.

    "It's great for Putin, Xi and other adversaries who want to see NATO divided," he said.

    "It hurts the legacy of President Trump and undercuts all the work he has done to strengthen the NATO alliance over the years."

    ABC/Reuters

    © 2026 ABC Australian Broadcasting Corporation. All rights reserved

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