US president Donald Trump has escalated tensions with European allies after warning that countries resisting his plan to take control of Greenland could face punitive US tariffs, as Washington openly pushes a proposed US$700bn deal to acquire the Arctic territory.
Speaking amid rising diplomatic strain, Trump said nations that refuse to “go along” with the US position on Greenland should expect economic consequences. His remarks came as Nato allies increased their military presence around the island following fears that the US could pursue the takeover through force if negotiations fail.
Greenland, the world’s largest island, is a semi-autonomous territory within the Kingdom of Denmark. While it governs most of its domestic affairs, defence and foreign policy remain under Danish control. Both Denmark and Greenland’s leadership have repeatedly rejected any suggestion of a sale, insisting the territory is not for sale under any circumstances.
Despite this, the White House has doubled down. A US envoy reportedly told European officials that a deal to take over Greenland “should and will be made”, framing the move as a strategic necessity tied to Arctic security, rare earth minerals, and growing Chinese and Russian influence in the region.
Trump’s threat of tariffs marks a sharp shift from diplomacy to coercion, placing pressure on European economies already navigating fragile trade relations with Washington. Analysts say the tactic echoes Trump’s broader foreign policy style, where trade measures are used as leverage to force geopolitical concessions.
The situation has triggered anxiety within Greenland itself. Local leaders and residents have expressed fear over the rhetoric of annexation and military force, with concerns that Greenland could become a flashpoint between major powers. Indigenous groups have also raised alarms about sovereignty, environmental protection, and the long-term consequences of foreign control over their land.
Nato’s deployment of troops to the region this week was officially described as defensive and precautionary. However, it reflects the seriousness with which European allies are treating the threat. Behind closed doors, diplomats are said to be scrambling to prevent a confrontation between the US and its long-standing allies.
The proposed US$700 billion price tag has only added to the controversy. Critics argue that even discussing a purchase undermines international law and the principle of self-determination. Others warn that normalising the idea of territorial acquisition by economic or military pressure could destabilise global norms.
While the White House maintains that Greenland is vital to US national security, European leaders remain united in their opposition. For now, Greenland’s government continues to assert that its future will be decided by its people, not foreign powers.
As tensions rise, observers say the standoff represents more than a dispute over an Arctic island. It is shaping into a broader test of alliance unity, international law, and how far economic pressure can be pushed in modern geopolitics.
