Donald Trump is unlike any president the United States has ever seen, consistently making headlines with his actions. Early in his presidency, he focused on tariffs, but he also discussed acquiring Greenland from time to time. By 2026, Trump might realize this goal, as he steadily pushes forward with determination. As NATO’s relevance wanes, new tariffs could lead to undesirable consequences.
NATO in Trump’s Crosshairs
Last year, Trump expressed a strong desire to see Canada as a new state. Shortly after, Greenland became a topic of interest. Simultaneously, he imposed triple-figure tariffs on China. Not stopping there, Trump attempted to dismiss Jerome Powell, undermining the long-standing principle of Federal Reserve independence. He subsequently faced legal battles after removing Fed member Cook, who opposed interest rate cuts.
Currently, as the Supreme Court prepares to issue a decision on tariffs by January 20, Trump is imposing additional tariffs on countries resisting collaboration over Greenland.
Trump’s plan to impose tariffs on European allies is causing the largest crisis in 70 years. Via Truth Social, he warned, “World peace is in danger!” claiming that if the U.S. doesn’t act, China and Russia will seize Greenland.
Criticizing NATO’s European members for sending troops to the region for security, Trump insisted that only the U.S. could provide protection. He threatened to impose tariffs until they agree to his terms, stating that he would continue to increase them until they comply. The erosion of NATO’s credibility could instigate a global economic crisis.
Additional Tariffs and Cryptocurrency Decline
Last year, Trump engaged in a tariff battle with the EU, intimidating them with severe levies. The EU overcame these threats through concessions, investments, and bilateral agreements. However, today, Trump’s demand for land from Denmark puts EU leaders in a difficult position. Many EU countries believe that Trump’s expansionist approach and unchecked freedom could ultimately cost the U.S. dearly.
On Sunday, European ally leaders issued a statement saying, “Tariff threats damage transatlantic relations and could lead to a dangerous downward spiral.” They expressed intentions to take coordinated countermeasures.
The global institutional structure established by the U.S. after World War II is being dismantled by Trump, entailing significant consequences for both the U.S. and the EU. While it remains uncertain how far Trump will push these boundaries, the Financial Times reports that the EU is preparing a response.
Last year’s tariff response has likely been reserved for today. The EU plans to impose tariffs worth 93 billion euros against the U.S., ready to implement severe measures including expelling U.S. companies from regional markets. This is a déjà vu, as we experienced similar events last year. Consequently, escalating tensions between the EU and the U.S. might lead to similar outcomes for cryptocurrencies as witnessed last year.