Trump threatens tariffs on eight NATO countries unless Greenland is sold to US
Former President Donald Trump announced tariffs on goods from eight NATO countries—Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland—starting at 10% on February 1 and rising to 25% on June 1 unless Denmark agrees to a “complete and total purchase of Greenland.” He framed the move as a national-security measure tied to troop deployments and Arctic strategic control and said the allies have benefited from U.S. security for decades. European leaders, including European Commission President Ursula von der Leyen and Danish Prime Minister Mette Frederiksen, rejected the tariffs as hostile and reiterated Greenland is not for sale. Two U.S. senators, Chris Coons (D-DE) and Lisa Murkowski (R-AK), traveled to Copenhagen to de-escalate and called NATO activity in Greenland constructive. Trump said he would use emergency economic powers to impose the tariffs; those powers may face imminent Supreme Court review. Traders should note heightened geopolitical risk, elevated trade friction with major European economies, potential legal challenges, and the possibility of escalation if tariffs are implemented or upheld—factors that could drive short-term market volatility and risk-off flows across equities, FX and crypto assets.
Neutral
This announcement raises geopolitical and trade risks that could spur short-term volatility and risk-off flows across global markets, including crypto, but it does not directly target any cryptocurrency or crypto infrastructure. Tariffs on European goods and the diplomatic escalation increase uncertainty: traders may see short-lived sell-offs in risk assets (including BTC and major altcoins) as investors rotate to safe havens and fiat liquidity tightens. However, absent direct sanctions on crypto, exchanges, or payment rails, there is no clear long-term fundamental shift favoring or harming crypto adoption or a specific token. Legal challenges (Supreme Court review) and diplomatic de-escalation efforts could limit the measure’s duration or scope, making impacts likely transient rather than structural. Therefore, the overall price impact on cryptocurrencies is expected to be neutral — potential short-term downside from risk aversion balanced by crypto’s role as an alternative asset and haven in some scenarios.