Trump’s Tariff Threats Over Greenland Spark Global Stock Plunge

President Donald Trump threatened new tariffs on eight European countries on Saturday, targeting Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. The move came after these nations sent small military forces to Greenland, a semi-autonomous Danish territory Trump wants the U.S. to buy. Stock futures fell sharply in response, with Dow Jones futures signaling a 700-point drop at market open.

Background

Trump has pushed for U.S. control of Greenland for months, calling it vital for national security in the Arctic. He argues the island's location helps counter threats from Russia and China. Greenland is part of the Kingdom of Denmark but runs its own local government. Greenlanders and Danish officials have said many times the territory is not for sale and they want to stay with Denmark.

Last week, talks in Washington between U.S., Danish, and Greenlandic officials failed to ease tensions. U.S. Vice President JD Vance and Secretary of State Marco Rubio met Danish Foreign Minister Lars Løkke Rasmussen. Rasmussen called the meeting constructive but said Trump's tariff threat surprised him.

European countries then sent troops to Greenland for what they described as Arctic security training. This included forces from the listed nations. Trump saw this as blocking his plans. On Saturday, as thousands of Greenlanders protested outside the U.S. consulate in Nuuk with 'Stop Trump' signs, Trump announced the tariffs on Truth Social.

The tariffs start at 10% on all goods from those countries entering the U.S. on February 1. They rise to 25% on June 1. Trump said they stay until the U.S. buys Greenland completely. He wrote that these countries are playing a dangerous game and strong measures are needed for global peace.

Key Details

Trump's post on Truth Social laid out the plan clearly. He said the measures protect U.S. interests and force a deal. Late Sunday, he posted again: “Now it is time, and it will be done!!!” This came as markets reacted with global stocks falling.

European leaders responded quickly. EU chief Ursula von der Leyen said Europe stands united against the threats. UK Prime Minister Keir Starmer called the tariffs completely wrong and spoke with Trump, Danish Prime Minister Mette Frederiksen, von der Leyen, and NATO head Mark Rutte.

"Our position on Greenland is very clear — it is part of the Kingdom of Denmark and its future is a matter for the Greenlanders and the Danes." – Danish Foreign Minister Lars Løkke Rasmussen

Rasmussen explained the military deployments aim to boost Arctic security. Greenlandic Prime Minister Jens-Frederik Nielsen said his people choose Denmark over the U.S. Protests in Nuuk drew crowds rejecting any U.S. takeover.

In the U.S., reactions split along party lines. Senate Democratic Leader Chuck Schumer said his party will push legislation to block the tariffs. He called the plan stupid and harmful to the economy and allies. Some Republicans voiced concern, saying it risks alliances.

Supreme Court Challenge

A U.S. Supreme Court ruling could come as soon as Tuesday. It might declare Trump's tariff plans illegal, dealing a blow to his Greenland strategy. The case questions the president's power to impose such trade measures without Congress.

Markets felt the heat right away. U.S. stock futures dropped, with the Dow set for its biggest loss in weeks. The dollar hit a two-week low. Global stocks slid as investors worried about U.S.-Europe trade tensions flaring.

Trump has not ruled out force if buying fails. Earlier this month, he said the U.S. must act on Greenland or risk Russia or China taking it. He dismissed talk of payment for now, focusing on security.

EU leaders plan an emergency summit this week to discuss responses. Some warn of a downward spiral in relations. Others say China and Russia benefit from the divide.

What This Means

The tariff threats test U.S. ties with NATO allies. These countries host U.S. bases and share defense burdens. A trade war could raise prices for U.S. consumers on cars, food, and machinery from Europe. European exporters face lost sales to their biggest market.

Arctic security hangs in balance. The region sees more activity from Russia and China. U.S. control of Greenland would give military bases closer to those rivals. But European presence there aims to deter such moves collectively.

Businesses brace for change. Companies in affected countries scramble to reroute supply chains. U.S. firms with European parts worry about costs. Investors pull back, adding to market volatility.

Denmark faces pressure. Prime Minister Frederiksen balances alliance with the U.S. and sovereignty. Greenlanders push back hard, with polls showing strong opposition to joining America.

Trump's approach echoes past trade fights, like with China. But hitting allies over territory raises stakes. If tariffs stick, retaliation could follow, hitting U.S. exports like farm goods and planes.

The Supreme Court decision looms large. A block would force Trump to seek Congress approval, slowing plans. Without it, tariffs roll out, escalating the standoff.

Global eyes watch for next moves. Will talks resume? Or does tension build toward June's higher rates? Markets stay jittery, with more drops likely if no deal emerges.

For now, Trump's push puts Greenland at the center of big power shifts. European unity grows, while U.S. politics splits. The world waits to see if words turn to action.