European capitals are considering imposing roughly €93 billion ($107.7 billion) in tariffs on American goods or restricting U.S. companies’ access to the bloc’s markets in response to President Donald Trump’s recent threats to European nations over Greenland, according to the Financial Times. The measures are being drawn up to give European leaders leverage ahead of meetings with Trump at the World Economic Forum in Davos this week, officials involved in the preparations told the newspaper.
The potential retaliation comes after Trump announced that the United States would impose tariffs on several European nations, linking the measure to what he described as threats to Greenland and global security amid growing U.S. interest in acquiring the Arctic territory from Denmark. Trump argued that the U.S. has long subsidized Denmark and other European Union countries by not charging tariffs and said it was time for Denmark “to give back,” citing threats from China and Russia. “World peace is at stake,” Trump said, adding that only the United States could effectively protect Greenland and prevent rival powers from gaining influence there.
Starting Feb. 1, 2026, Trump said the United States would impose a 10% tariff on goods imported from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. The tariff would rise to 25% on June 1, 2026, and remain in place until a deal is reached for the “complete and total purchase of Greenland,” a self-governing territory within the Kingdom of Denmark and a NATO ally. Trump emphasized Greenland’s strategic importance, citing its geography as critical for the operation of U.S. missile defense systems, which he referred to as the “Golden Dome.”
The announcement coincides with heightened military activity in Greenland. The Danish Armed Forces said they had increased their presence in and around the territory, conducting joint training exercises with NATO allies including Germany, France, Sweden, and Norway. These operations involve deployments by air, sea, and land and focus on protecting critical infrastructure while enhancing NATO’s ability to operate in Arctic conditions. “The purpose is, among other things, to enhance the ability to operate under Arctic conditions and thereby strengthen the security of the entire alliance in the Arctic, to the benefit of both European and transatlantic security,” the Danish Armed Forces said.
Trump criticized Denmark and other European nations for what he described as insufficient security measures in Greenland, warning that multiple countries had visited the territory “for purposes unknown” and calling the situation dangerous and “unsustainable.” “These countries have put a level of risk in play that is not tenable or sustainable,” he said, adding that the United States was immediately open to negotiations with Denmark and other affected countries while emphasizing that Washington has provided “maximum protection” to European allies for decades.
European officials are now preparing what could be the largest trade retaliation against the United States in decades. By targeting $108 billion worth of U.S. goods and restricting market access, the bloc aims to apply significant pressure on Washington ahead of diplomatic talks in Davos. The outcome could shape U.S.-Europe trade relations and Arctic security policy, with Greenland at the center of the dispute.
