Trump's Greenland Tariff Threat: Reshaping Alliance Dynamics and Global Trade

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Firstpost•19-01-2026, 20:01
Trump's Greenland Tariff Threat: Reshaping Alliance Dynamics and Global Trade
- •US President Donald Trump's tariff threat over Greenland sale signals a structural shift in economic power within alliances, impacting European allies.
- •Trade agreements with Washington are no longer seen as stabilizing commitments, as tariffs can be imposed for non-trade objectives.
- •Europe faces the collapse of trade agreement commitment functions, issue separability, and institutional asymmetry.
- •The article suggests Europe must reclassify US trade commitments as contingent, activate deterrence via the Anti-Coercion Instrument, and diversify trade.
- •For other US allies, the episode implies alignment doesn't guarantee predictability, trade agreements become hegemon's options, and accelerates hedging behavior.
Why It Matters: Trump's Greenland tariff threat fundamentally alters alliance logic, making trade agreements instruments of statecraft.
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