Trump's Greenland Gambit: New Tariff Battle Looms

President Trump's unexpected tariff threat on EU nations opposing the U.S. takeover of Greenland has sent shockwaves through European markets. The EU plans to retaliate with tariffs on U.S. imports, escalating tensions reminiscent of last year's trade war. Economic and geopolitical implications are at stake.

President Donald Trump has reignited trade tensions with Europe by threatening new tariffs on EU nations opposed to his ambitious plan to acquire Greenland. Despite last year's efforts to reduce trade conflicts, Trump's new stance could unravel these agreements, causing economic and political ripple effects.

Trump's plan, announced Saturday, involves a 10% increase in tariffs from February 1 on goods from Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway. This move, which EU leaders have labeled as blackmail, aims to push Europe into allowing the U.S. to purchase Greenland.

The European Union has reacted by preparing a countermeasure package worth 93 billion euros and is discussing potential new tariffs on U.S. imports. This development may see companies re-evaluate trading relationships, shifting towards 'less problematic nations' amid fears of higher American consumer prices and broader geopolitical instability.

(With inputs from agencies.)