Europe's Dilemma: Responding to Trump's Greenland Tariffs and Transatlantic Shift

• Donald Trump has threatened 10-25% tariffs on eight European countries, including the UK, for supporting Danish sovereignty over Greenland.
• The tariffs, effective February 1, 2026, are a coercive measure to pressure Denmark into selling Greenland to the US, a long-standing American interest.
• Greenland is strategically important for Arctic shipping routes, rare earth deposits, and missile defense, crucial for Trump's "Golden Dome" defense system.
• Europe's usual trade retaliation playbook is complicated by its security dependence on the US and internal divisions on market exposure.
• Five options for Europe include accepting the new reality of tariffs, diversifying trade faster, addressing security dependence, reconsidering UK-EU relations, and maintaining a united front against US pressure.

Why It Matters: Europe faces a complex challenge in responding to Trump's Greenland tariffs, signaling a major shift in transatlantic relations.