Trump targets European allies with fresh tariff threats again

New Tariffs and Greenland Acquisition Demand

U.S. President Donald Trump announced that from Feb. 1, 2026, Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland will face a 10% tariff on all goods entering the United States. The tariff is set to rise to 25% on June 1 unless a “complete and total purchase of Greenland” is agreed upon.

In a post on Truth Social on Jan. 18, Trump stated that the taxes would remain “until such time as a deal is reached,” claiming the U.S. has “subsidized Denmark, the EU and others for many years.” He emphasized the critical nature of the situation, proclaiming, “World peace is at stake!”

Trump issued a warning that “China and Russia want Greenland, and there is not a thing that Denmark can do about it.” He further asserted that only the U.S. “can play in this game” and described European visits to Greenland as “a very dangerous game.”

Additionally, Trump referenced the so-called “Golden Dome” defense system, claiming it “can only work at its maximum potential and efficiency if this land is included in it.”

Market and Expert Reactions to Tariff Threats

The announcement generated significant reactions across financial markets and among commentators. CNBC host Jim Cramer suggested that Trump may have acted prematurely, stating, “If I were Trump I would have waited to see if the Supreme Court backs him on tariffs. Could be very awkward if they don’t.” He also warned that markets were “too overbought to bounce.”

However, some traders interpreted these comments through what is sometimes called the “Inverse Cramer effect,” where markets tend to move in the opposite direction of his forecasts, and reacted positively.

Former White House communications director and Bitcoin advocate Anthony Scaramucci outlined five potential geopolitical risks if Trump’s rhetoric escalates into concrete action. These risks include a fracturing of NATO, a European realignment toward China, and a protracted Arctic insurgency. He cautioned that seizing Greenland could “legitimize Russian and Chinese territorial revisionism” and “damage American interests for decades.”

"Hopefully Trump will be impeached and removed from office if he tries this. It is no longer a zero probability," Scaramucci added.

The Kobeissi Letter newsletter commented that the next 48 hours are "critical" as the European Union is expected to adopt an "aggressive, but open approach." The newsletter further noted, "President Trump ALWAYS leads with a punishing and threatening message, it's part of his negotiation tactic."

The team cited the October standoff with China as a precedent, where a similar tactic resulted in a new trade agreement and Beijing lifting its restrictions on rare earth exports that Washington had criticized. The timing of this announcement on a Saturday means markets will only reopen Monday night, potentially allowing investors time to absorb the news and possibly softening any initial selloff.

Crypto Market Remains Stable Amidst Threats

In contrast to previous reactions, crypto markets have remained notably calm following Trump's latest tariff threats. Historically, such pronouncements have caused significant volatility.

One of the most infamous episodes occurred on Oct. 10, 2025, when Trump threatened to impose a 100% tax on Chinese imports. This led to crypto markets experiencing a wipeout of over $19 billion in mere hours.

However, on this occasion, the crypto market has shown little to no movement. As of the latest data, Bitcoin (BTC) was trading at $95,237.94, showing no change over the past 24 hours. Ethereum (ETH) saw a slight increase of 0.7% to $3,321.75, while XRP (XRP) experienced a minor dip of 0.3% to $2.06.

Prediction markets suggest that traders are gradually increasing their confidence in a potential Greenland deal. On Polymarket, the percentage of traders betting "yes" on the question "Will Trump acquire Greenland before 2027?" has risen by 14%. Similarly, in Kalshi, 41% of traders believe Trump will succeed in acquiring at least part of Greenland by Jan. 20, 2029.