Trump's Greenland Gambit: Tariffs Threaten NATO Unity, Spark Geopolitical Crisis

Politics
M
Moneycontrol•19-01-2026, 16:30
Trump's Greenland Gambit: Tariffs Threaten NATO Unity, Spark Geopolitical Crisis
- •US President Donald Trump threatens escalating tariffs on EU and NATO members opposing US acquisition of Greenland, escalating transatlantic dispute.
- •Tariffs could begin at 10-15% in February 2026, rising to 25% by June if no deal is reached, framed as retaliation for 'playing a dangerous game' in the Arctic.
- •Greenland, an autonomous territory of Denmark, holds significant strategic value due to its Arctic location, natural resources, and role in missile defense (Thule Air Base).
- •The island was crucial during the Cold War, particularly for monitoring Soviet activities and securing the GIUK gap, a vital maritime chokepoint.
- •Trump's approach risks unraveling NATO, potentially weakening the alliance formed to counter challenges from Russia-China strategic partnership.
Why It Matters: Trump's aggressive pursuit of Greenland through tariff threats risks fracturing NATO and reshaping global alliances.
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