Trump Escalates Greenland Crisis: Tariffs on Europe & The Diego Garcia

Introduction In a shocking start to 2026, US President Donald Trump has reignited his controversial ambition to buy Greenland. What began as a diplomatic suggestion years ago has now escalated into a full-blown geopolitical crisis. On January 20-21, 2026, Trump threatened to impose heavy tariffs on European allies unless Denmark sells the island to the US. He has justified this move by citing the UK’s “loss” of Diego Garcia and, in a bizarre twist, his grievance over not winning the Nobel Peace Prize. Here is a detailed breakdown of this unfolding saga and its global impact.

The Tariff Threat: “Sell Greenland or Pay Up”

President Trump has issued an ultimatum to eight NATO allies, including Denmark, the UK, Germany, and France.

• The Threat: Effective February 1, 2026, the US plans to impose a 10% tariff on all goods from these countries.
• Escalation: Trump warned that if a deal for the “Complete and Total Purchase of Greenland” is not reached, the tariffs will rise to 25% by June 1, 2026.
• Why? Trump argues that the US needs “total control” of Greenland for national security to protect the Arctic from Russian and Chinese influence.

The Diego Garcia Connection: “We Won’t Be Weak Like the UK”

Trump has directly linked his aggressive push for Greenland to the recent controversy over Diego Garcia (a strategic island in the Indian Ocean).

• The Comparison: Trump blasted the UK’s decision to hand over sovereignty of the Chagos Islands (Diego Garcia) to Mauritius, calling it an “act of great stupidity” and “total weakness.”
• The Logic: He argued that the UK “giving away” key territory has emboldened China and Russia. To prevent the US from looking weak, he claims America must acquire Greenland to secure its own strategic dominance, ensuring the US doesn’t lose influence like its European allies.

The “Nobel Prize” Text Message

In one of the most surprising elements of this story, reports emerged on January 20 that Trump sent a text message to the Prime Minister of Norway, Jonas Gahr Støre.

• The Message: Trump reportedly wrote that since Norway (which awards the prize) did not give him the Nobel Peace Prize despite him “stopping 8 wars,” he no longer feels an “obligation to think purely of Peace.”
• The Implication: He suggested that because he was “snubbed” for the award, he is now free to pursue aggressive expansionist policies—like seizing Greenland—for the good of the United States.

Global Reactions: “Greenland is Not for Sale”

The international response has been swift and furious.

• Greenland & Denmark: Greenland’s Premier, Jens-Frederik Nielsen, stated firmly, “We choose Denmark,” rejecting any US takeover. Denmark has called the proposal “absurd.”
• European Union: EU leaders are preparing a “united and unflinching” response, with potential retaliatory tariffs on US goods if Trump follows through.
• NATO Crisis: Analysts fear this dispute could fracture the NATO alliance, as the US is effectively threatening its own allies with economic warfare over territory.
• Canada: Canadian PM Mark Carney has publicly supported Denmark’s sovereignty, opposing the US bullying tactics in the Arctic.

What Happens Next?

• Supreme Court Battle: The US Supreme Court is currently reviewing whether Trump’s use of tariffs for such political goals is legal. Trump has hinted that if the court blocks him, he might use “something else” (declining to rule out military pressure).
• Davos Showdown: With world leaders gathering at the World Economic Forum in Davos this week, this issue is expected to dominate discussions, overshadowing economic talks.

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