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TWN
Info Service on WTO and Trade Issues (Jan26/04) Geneva, 20 Jan (D. Ravi Kanth) — Amid efforts to avert a likely trade war over Greenland – one that risks straining the fragile trans-Atlantic alliance – United States President Donald Trump on 19 January introduced a new dimension to his push for Arctic territory, suggesting that he is no longer acting “purely of Peace” after being denied the Nobel Peace Prize last year. Although he has ruled out annexing Greenland by force, President Trump told NBC News on 19 January that he would “100%” move forward with plans to impose tariffs on European nations if he fails to secure control of Greenland, a semi-autonomous territory of Denmark. President Trump appeared to vent his frustration with Norway over the Nobel Peace Prize, asserting: “Norway totally controls it despite what they say. They like to say they have nothing to do with it, but they have everything to do with it.” He also targeted European leaders who are currently preparing to deploy a powerful retaliatory trade instrument – often referred to as a “bazooka” in trade parlance – on more than $100 billion worth of American goods, should Washington proceed with its threat to impose a 10% tariff on imports from Germany, France, The Netherlands, Denmark, Sweden, Finland, Norway, and the United Kingdom over the Greenland issue. In a text message sent to Norwegian Prime Minister Jonas Gahr Store on 18 January, President Trump expressed his grievances bluntly: “Considering your Country decided not to give me the Nobel Peace Prize for having stopped 8 Wars PLUS, I no longer feel an obligation to think purely of Peace …,” signaling that he might pursue any strategy necessary to acquire Greenland. As European leaders scrambled to formulate a unified response, some countries, including Hungary, have already indicated that they may oppose the retaliatory tariffs on US goods, according to media reports. Indeed, the European Union, the United Kingdom, and Norway appear more inclined toward negotiation than retaliation in the face of President Trump’s tariff threat, multiple media reports have suggested. Tensions between President Trump and Prime Minister Store escalated after Oslo sent a text message to President Trump on 18 January expressing opposition to the proposed US tariffs. President Trump reportedly fired back, declaring that “the World is not secure unless we have Complete and Total Control of Greenland.” Earlier, in a post on Truth Social, the Trump administration had cited numerous justifications for seeking control of Greenland – from access to valuable mineral and oil resources to strategic security concerns about potential future annexation attempts by China or Russia. Notably, although the controversial Venezuelan opposition leader Maria Corina Machado – who was awarded the Nobel Peace Prize last year – generously donated the prize to President Trump at a White House event last week, few realized that he harbored lingering resentment over being denied the honour himself, several analysts and commentators observed. On 19 January, Norwegian Prime Minister Store responded publicly to President Trump’s text message. “We pointed to the need to de-escalate,” he said in a statement, adding that he had repeatedly informed President Trump that the Norwegian government has no influence over the Nobel Peace Prize selection process. Despite the apparent resolve among some EU member states to respond firmly to the US tariff threats, the bloc has so far failed to adopt a common position when decisive action is needed, analysts observed. Meanwhile, Denmark on 19 January reinforced its military presence in Greenland. A spokesman for the Danish Armed Forces confirmed that a “substantial contribution” of troops would arrive in Kangerlussuaq, western Greenland, that day. Italian Prime Minister Giorgia Meloni, speaking during a visit to South Korea on 18 January, sought to downplay the troop deployment, stating that it should not be interpreted as “directed against the United States, but rather against other actors.” According to a BBC news report, she said: “Clearly, it seems that there’s been a problem of understanding and communication.” “We are now preparing coordinated countermeasures with our European partners,” German Finance Minister Lars Klingbeil said on 19 January. “We are not prepared to be blackmailed.” In a national address on 19 January morning, UK Prime Minister Keir Starmer condemned the Trump administration’s tariff threats as “completely wrong,” though he stopped short of outlining specific retaliatory steps. Starmer – who has championed a conciliatory approach with President Trump that many European leaders have emulated – emphasized that his priority was to prevent escalation. “Being pragmatic does not mean being passive,” he said. President Trump has pledged to impose 10% tariffs on goods from Denmark, Norway, Sweden, France, Germany, the UK, The Netherlands and Finland beginning 1 February. These tariffs would rise to 25% on 1 June and remain in place until a deal is reached over Greenland. According to a news report in the Wall Street Journal, “so far, the only step the bloc has taken in retaliation is to effectively freeze the process of approving last summer’s EU-US trade deal in the European Parliament.” EU leaders are scheduled to meet on 22 January evening to discuss negotiations with the US and to chart a path forward. However, officials indicated that they are unlikely to take a final decision until after Washington takes concrete action. President Trump is also expected in Europe this week to attend the annual World Economic Forum in Davos, Switzerland. “Our number one priority now is to really engage and cooperate and have a good dialogue with US counterparts,” European Commission Vice-President Henna Virkkunen told the Financial Times on 19 January. “At the same time, we have also tools at our disposal here. We have prepared also for that.” In a separate development, US Treasury Secretary Scott Bessent, speaking in Davos, warned that EU retaliation against President Trump’s tariff threats would be “very unwise,” saying that “everybody should take the president at his word,” according to the Financial Times. US Trade Representative Jamieson Greer, speaking on 17 January, placed the onus squarely on Europe to manage the fallout from President Trump’s Greenland-related tariff threats. “If I were the Europeans, I would probably try to silo this off, if they can. If they want to make it an issue in the trade deal, that’s really up to them and not us,” Greer told reporters at the Detroit Auto Show, according to a Reuters news report. Greer said the potential Greenland tariffs “are largely national security determinations” but added, “whenever there’s a tariff involved, we’re involved, and we want to make sure that we’re equipping the president to be able to take whatever steps he makes.” He also noted that the EU has yet to lower any tariffs on US goods as part of their trade agreement. “They promised to do it, we’ve moderated our tariffs for them, they have yet to do it for us. It’s winding through their process slowly,” Greer said. +
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