Trade War Over the Arctic: EU Vows Retaliation Against Trump Greenland Tariff Threat 2026

The transatlantic alliance is on the brink of an all-out economic war. U.S. President Donald Trump hasn't minced words, vowing to squeeze European allies with escalating tariffs until they facilitate the sale of Greenland to the United States. Major powers like Germany and France have denounced the move as blatant blackmail, preparing a suite of unprecedented countermeasures.

Europe United Against Trump Greenland Tariff Threat 2026

On January 17, 2026, protests erupted in Nuuk as citizens rejected the U.S. demand to cede the territory. According to Reuters, Trump has threatened eight nations—including Denmark, Sweden, and Norway—with tariffs surpassing the current 10% and 15% benchmarks. The EU describes these threats as a direct assault on territorial integrity and sovereignty.

French President Emmanuel Macron is reportedly pushing for the activation of the 'Anti-Coercion Instrument.' This powerful tool could restrict U.S. access to public tenders and banking activities within the bloc. Meanwhile, the European Parliament is set to suspend work on a pivotal trade deal originally scheduled for a vote on January 26-27.

A Last Resort: World Cup Boycott?

The tension has spilled over into the sporting world. German lawmaker Juergen Hardt suggested a boycott of the 2026 FIFA World Cup, hosted by the U.S., as a potential lever to bring the administration to its senses. While Italy'sGiorgia Meloni maintains a line of communication with Trump, describing the threat as a "mistake," the collective European stance remains non-negotiable.