President Donald Trump escalated his campaign to acquire Greenland on Friday, floating the possibility of imposing tariffs on countries that oppose U.S. control of the strategic Arctic territory—a threat that came just hours after European troops arrived on the island in a show of solidarity with Denmark.

"We need Greenland for national security. So I may do that," Trump said at the White House when asked if he would use tariffs as leverage. The president did not specify which countries could be targeted, but his comments suggested the European Union and its members could face economic consequences for supporting Denmark's position.

The Greenland Gambit

Trump's interest in Greenland is not new—he first floated the idea of purchasing the autonomous Danish territory during his first term in 2019, a suggestion that was swiftly rejected by both Greenlandic and Danish officials. But his second-term push has grown increasingly aggressive, with the administration reportedly preparing a formal offer to buy the island.

The president's rationale centers on national security. Greenland's location in the Arctic gives it strategic importance as climate change opens new shipping routes and exposes vast mineral deposits, including rare earth elements critical for defense and technology applications. The U.S. already maintains Pituffik Space Base on the island, a key installation for missile warning and space surveillance.

"Greenland is vital to our national security interests. We will pursue every avenue to ensure American control over this strategically critical territory."

— White House statement

European Response

Trump's tariff threat came a day after a contingent of troops from the United Kingdom, France, Germany, Norway, and Sweden arrived in Greenland—a visible demonstration of European unity against American territorial ambitions. Denmark, meanwhile, has announced it is increasing its military presence in and around Greenland.

A delegation from Greenland and Denmark met with Vice President JD Vance and Secretary of State Marco Rubio in Washington on Thursday. The talks ended without breakthrough, with the delegation stating there remains a "fundamental disagreement" with the Trump administration.

"Greenland is not for sale," Greenlandic Premier Mute Bourup Egede reiterated following the meetings. "Our future is determined by Greenlanders, not by threats from Washington."

The Tariff Tool

Trump's suggestion that he might use tariffs to pressure countries on an unrelated territorial dispute represents a novel—and to critics, alarming—expansion of how he views trade policy. Tariffs on European Union exports are currently capped at 15% under existing arrangements, but Trump has shown willingness to invoke emergency powers to impose additional levies.

  • Current EU Tariffs: Capped at 15% under existing arrangements
  • IEEPA Authority: Trump has used emergency powers to impose additional tariffs, though this authority faces Supreme Court challenge
  • Potential Targets: Denmark, Germany, France, and other nations supporting Greenland's position could face new levies

Legal and Diplomatic Complications

Trump's ability to impose new tariffs faces significant legal uncertainty. The Supreme Court is expected to rule soon on the legality of his use of the International Emergency Economic Powers Act (IEEPA) to justify sweeping trade levies. Lower courts have already found that the law does not authorize tariff imposition.

Diplomatically, using tariffs to pursue territorial acquisition could strain alliances that have been foundational to American security since World War II. NATO allies are already on edge following Trump's repeated criticisms of the alliance and suggestions that the U.S. might not defend members who don't meet spending targets.

Market Implications

For investors, Trump's Greenland threats add another layer of uncertainty to an already complex trade landscape. The prospect of new tariffs on European goods—particularly if imposed unilaterally—could roil markets that have only recently stabilized following the October 2025 U.S.-China trade truce.

European stocks showed limited reaction Friday, with investors seemingly treating the threat as more bluster than imminent policy. But analysts cautioned that the situation bears watching as Trump has repeatedly shown willingness to follow through on trade threats that initially seemed unlikely.

As markets closed for the long holiday weekend, Trump's Greenland ambitions remained unresolved—a geopolitical wild card that adds to the long list of factors investors must weigh in 2026.