Summary:
- Trump announced that Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would face a 10% tariff from February 1, rising to 25% from June 1, unless the U.S. is permitted to buy Greenland.
EU to convene emergency leaders’ summit amid U.S. tariff threats over Greenland
Trump announces 10% tariffs from Feb 1, rising to 25% by June
€93bn in suspended EU retaliatory tariffs to auto-trigger on Feb 6 if talks fail
EU leaders signal unity behind Denmark and Greenland, reject coercion
UK and NATO allies warn tariffs undermine collective security
Monday open indicative forex prices, 19 Jan 2026. 'Risk' lower on Trump's latest trade war
The European Union is moving toward an emergency leaders’ summit as U.S. President Donald Trump escalates trade pressure on European allies over Greenland, threatening a new wave of tariffs unless Washington is allowed to purchase the territory.
European Council President Antonio Costa said he would convene an extraordinary EU summit in the coming days, following consultations that showed strong unity among member states in support of Denmark and Greenland. An EU official said the meeting is likely to take place in person on Thursday, January 22.
In a statement, Costa said EU leaders were prepared to defend the bloc against “any form of coercion” while continuing to engage constructively with the United States. The move underlines growing concern in Brussels that the dispute risks morphing into a broader transatlantic trade confrontation.
The escalation comes after Trump announced that Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would face a 10% tariff from February 1, rising to 25% from June 1, unless the U.S. is permitted to buy Greenland. The tariffs are framed by Washington as a response to security and strategic interests in the Arctic.
Separately, an EU diplomat told Reuters that a suspended package of retaliatory tariffs worth €93 billion on U.S. goods will automatically come back into force on February 6 if no agreement is reached. The measures were shelved last August for six months after Brussels and Washington struck a temporary trade deal, but that accord is now in jeopardy.
The political pushback has widened beyond the EU. UK Prime Minister Keir Starmer told Trump that imposing tariffs on allies over Greenland was “wrong,” arguing that security in the High North is a shared priority for NATO allies. Starmer held calls with Danish Prime Minister Mette Frederiksen, European Commission President Ursula von der Leyen, and NATO Secretary General Mark Rutte before speaking with the U.S. president.
The dispute places fresh strain on transatlantic relations, with markets now watching whether the EU summit can de-escalate the confrontation before automatic tariffs on both sides come into force in early February.
The Greenland dispute injects fresh geopolitical risk into EU–U.S. relations, raising the probability of near-term tariff escalation and adding downside risk to European trade sentiment into February. The euro is lower, a little, in early trade here, as is most other FX vs. the USD (see link above to early rates guide).
From Trump's 'tweet' where he spat the dummy and announced more tariffs. Trump's tends to chicken out and cancel tariffs, earning him the 'TACO' nickname (Trump Always Chickens Out). It's a tedious process we have the endure until his tantrums subside. Still, it adds some tradeable volatility to markets.
