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In 1946, the U.S. put a price on Greenland for the first time. The country’s then-president, Harry Truman, offered Denmark $100 million in gold, which Copenhagen refused. More than half a century later, Donald Trump, another U.S. president, has doubled down on his quest for U.S. control of Greenland. But this time, the stakes are much higher.
Data shows Trump’s Greenland endeavour, which he considers important for national security, could undermine years of diplomacy fostered by the U.S. with its largest trade partner and investor– the EU, and has unsettled the world’s longstanding military alliance– NATO.
Greenland is a semi-autonomous territory under the Danish Kingdom. Its geographic location between North America and the Arctic makes the territory crucial for military surveillance and Arctic shipping routes. While it is also said to have significant mineral deposits such as rare earths, mining and extraction remain questionable due to the terrain.
Last weekend, Trump threatened to impose a 10% tariff on eight European countries–Denmark, Norway, Sweden, the UK, France, Germany, the Netherlands and Finland— when they opposed Trump’s quest for Greenland. He also said this would increase upto 25% by June 1 until a deal is reached with Washington.
With an ally turning against itself, Denmark’s Prime Minister Mette Frederiksen noted that “Europe won’t be blackmailed”. Reports state that EU leaders are mulling over a 93 billion euro ($107.7 billion) package of tariffs on U.S. imports and are considering deploying the ‘trade bazooka’ — a term used to describe the EU’s plan to take on political bullying and blackmailing.
For instance, French President Macron had already called for the Anti-Coercion Initiative, which will restrict the U.S.’s access to the European market in terms of imports, investment and even corporations. Ironically, the Bazooka idea was initially introduced in 2023 when Lithuanian goods were blocked by China, the very country which Trump claims will take over Greenland.
This ripple could have a much larger effect.
The EU is the U.S.’s largest trade partner, and the U.S. is the EU’s biggest export partner. But escalating tariffs could tip the scales towards China, already the biggest source of the EU’s imports. The EU is also the U.S.’s largest investor, accounting for 50% of all FDI into the country. It is also the largest recipient of U.S. FDI, which could take a hit if ACI is deployed.
The chart below shows EU-U.S. relations across trade and FDI
Trump’s interest in Greenland seems to be much larger than military, as the 1951 Denmark treaty already allows the U.S. to establish bases as deemed necessary. The escalating pressure, including his posts on TruthSocial showing Greenland as part of the U.S. and not declining questions on the U.S.’s military intervention, has unsettled the NATO allies.
Founded in 1949, the transatlantic treaty, which embodies the principle of collective security–an attack on a member is considered an attack on all members– deterred the Soviet Union’s expansion in the post-Cold War period. The U.S., one of the founding members of NATO, is already obliged to protect Greenland, which is a part of NATO under Denmark.
Individual defence spending aside, the U.S. has made contributions to the organisation amounting to atleast 15% of NATO’s common budget each year.
However, by claiming to make Greenland part of the U.S. “in one way or the other”, President Trump has significantly undermined the Treaty and the region, which holds significant U.S. military bases.
President Trump has repeatedly defended his claim, saying it is in the best interests of the world for the island to be part of the U.S., but data show that it is a deal that no one wants.
Protestors in Denmark, in the last two weeks, have been marching with placards reading ‘Hands off Greenland’ and ‘Greenland not for sale’.
Within the island, the inhabitants have already contended that they’d rather be with the Danish kingdom than become a part of the U.S.
A poll conducted by Verian last year showed that 85% oppose leaving the Danish Kingdom to be part of the U.S. This includes Greenlanders, who also advocated for Greenland to become an independent state.
Survey shows that more than 54% Americans do not support the U.S. taking over Greenland, across all political affiliations– democrats and republicans.
Besides, Greenlanders’ choice to stay with the Danish Kingdom rather than the U.S. can be attributed to various factors. Despite being a superpower, America trails behind Denmark across various factors such as HDI scores, life expectancy and freedom index. Denmark also has much lower mortality per lakh population, rent prices, health expenditure, inflation and homicide rates when compared to the U.S.
Published – January 21, 2026 05:29 pm IST
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How Trump’s quest for Greenland is unraveling NATO and the U.S.’s ties with the EU
