The US has announced it will impose a 10% tariff on all goods imported from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland in connection with the Greenland issue.

On January 17, US President Donald Trump announced he would impose a 10% tariff on Denmark and seven other European countries starting in February because of their opposition to US control of Greenland. Other affected countries include Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland.

This decision threatens to disrupt the landmark trade agreement between the United States and the European Union (EU) signed last year – which was expected to cut tariffs on many US exports. In response, leaders of the most powerful political groups in the European Parliament declared on January 17th that the full implementation of the agreement needed to be halted.

President Trump wrote in a social media post while at a golf club in West Palm Beach, Florida, that tariffs would increase to 25% on June 1st if no agreement was reached on the U.S. “buying all and nothing of Greenland.”

Trump's statement came after European nations deployed military and diplomatic resources to Greenland to prevent the US from acquiring the territory. The US president appeared to be using the tariffs as leverage to pressure Denmark and other European countries to negotiate the status of Greenland, a semi-autonomous territory of NATO ally Denmark, which he considers crucial to US national security.

Mr. Trump is expected to travel to the World Economic Forum in Davos, Switzerland, on January 20th, where he will likely meet with European leaders whom he has just threatened with tariffs, which will take effect in just over two weeks.

Danish Foreign Minister Lars Løkke Rasmussen called President Trump's move "unexpected" following a "constructive meeting" with senior US officials this week in Washington.

European Commission President Ursula von der Leyen and European Council President Antonio Costa, in a joint statement, said these tariffs “will undermine transatlantic relations and risk a dangerous chain reaction.” They stressed that Europe remains “committed to defending its sovereignty.”

Many questions remain about how the White House can enforce these tariffs, given that the EU is a single economic and trade bloc. It is also unclear how Trump will act under U.S. law, although he could invoke emergency economic powers, which are currently under consideration by the U.S. Supreme Court.

The EU is the largest trading partner and the biggest source of imports for the US. It is unclear whether these new tariffs will overlap with existing tariffs (currently 15% on EU goods and 10% on UK goods). Increased tariffs on European countries could lead to higher prices on everything from pharmaceuticals to aircraft components.

Source: VTV

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