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News  >  News Details

Trump proposed new tariffs while pushing for the acquisition of Greenland.

2026-01-17 02:01:25

On Friday (January 17), US President Trump said he might impose tariffs on Denmark and other relevant parties if they do not cooperate on matters concerning Greenland. "We need Greenland for national security reasons. So I might do that," Trump said. These remarks indicate that Trump's efforts to push for the US to acquire Greenland have become increasingly aggressive in recent months, turning to one of his favorite tools for exerting influence abroad.

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These remarks were made impromptu during a nearly 45-minute, almost uninterrupted speech by Trump, who drew parallels to his previous threats of tariffs on pharmaceutical prices in countries like France and Germany. This marks a further unilateral expansion of Trump's "Tariff King" strategy into the geopolitical arena, potentially triggering trade retaliation from the EU and exacerbating transatlantic trade tensions. The French Finance Minister has warned that such actions would harm EU trade as a whole and has not ruled out retaliatory tariffs in conjunction with other EU member states.

The Trump administration previously stated that it was weighing various options, including using U.S. troops to take over Danish territory. Trump asserted that U.S. possession of Greenland is crucial—despite already maintaining a military base there—due to national security concerns posed by China and Russia. Greenland's strategic importance stems primarily from its location and resources: it is home to the U.S. Thule Air Base (a key node in the Arctic early warning system, monitoring ballistic missile threats in the Arctic and surrounding airspace) and abundant rare earth minerals (essential for high technology and defense, and core raw materials for strategic emerging industries such as new energy and semiconductors).

Trump has repeatedly emphasized that "Russian and Chinese ships are circling Greenland," but there is a lack of publicly verifiable evidence of such a military presence; Russia's main activities are in the Barents Sea, and China's are in the Bering Sea. Analysts believe that Trump's real motive is to control rare earth and mineral resources, and control of Arctic shipping routes, rather than simply a military threat, similar to his past focus on Venezuelan oil. Right-leaning views (such as Fox News) support the claim that this is "peace through strength," prompting NATO to strengthen its Arctic defenses.

The White House also stated that the United States is considering an offer to purchase the Arctic island. However, Greenland and Denmark have repeatedly insisted that the territory is not for sale and that they have no desire to be absorbed by the United States. After meeting with Vice President Vance and Secretary of State Rubio on Thursday, Danish and Greenlandic officials reiterated their "fundamental differences" and emphasized that Greenland's autonomous status is inviolable. Meanwhile, congressional delegations from both parties visited Copenhagen to ease tensions. European troops have begun arriving in Greenland, primarily for defensive deployments within the NATO framework, in response to pressure from Trump. Russia, on the other hand, accused the West of "double standards," stating that there is no evidence that Moscow intends to occupy the island, while emphasizing its legitimate scientific research and defense rights in the Arctic.

Trump suggested he might use tariffs to achieve his Greenland goal, following his description of a similar strategy to force foreign countries to raise drug prices. Trump has pushed to lower U.S. drug costs by requiring domestic prices to match lower overseas prices. At a White House event on Friday, Trump said he threatened several world leaders with either raising drug prices as part of “most-favored-nation” agreements or facing high tariffs on all goods they import into the U.S. “I might do the same with Greenland. If countries don’t cooperate with Greenland, I might impose tariffs on those countries because we need Greenland for national security reasons,” he said.

Some international law scholars have pointed out that this move may violate the provisions of the UN Charter regarding territorial sovereignty. Kalshi's market forecasts indicate a 36-37% probability that the US will gain at least partial control of Greenland within the next 12 months.

Delegations from Greenland and Denmark said they had “fundamental differences” after meeting with Vice President Vance and Secretary of State Rubio in Washington on Thursday. Since returning to office, Trump has significantly expanded the administration’s use of tariffs, raising the overall average tariff rate to an estimated 17%. Many of the broadest tariffs were imposed using the International Emergency Economic Powers Act (IEEPA). The use of this law has been challenged multiple times, with several courts finding these actions illegal, but the Trump administration has consistently maintained its legality. The dispute has escalated to the Supreme Court, which may soon rule on the legality of Trump’s IEEPA tariffs. Trump claims that if the Supreme Court is against him, his tariff and geopolitical expansion agenda will crumble. “I want us to win this case on the Supreme Court because if we don’t, it will be a disgrace to our country,” he said on Friday.

Analyst Opinions

Geopolitical experts suggest strengthening joint investment and the "Arctic Sentry" mission within the NATO framework, and deepening intelligence sharing and military cooperation in the Arctic region, rather than relying on unilateral tariffs or threats of force, in order to maintain the stability of the alliance.

Economic analysts warn that new tariffs could exacerbate inflation and drive up global supply chain costs, but would benefit domestic mining and defense industries in the United States, potentially boosting employment in those sectors in the short term.

From a neutral perspective, multilateral negotiations (including those with the United Nations or the Arctic Council) are a more sustainable path that can balance security needs with alliances, take into account Greenland's demands for autonomy, and prevent escalation into a larger conflict.
Risk Warning and Disclaimer
The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.

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