Prime Minister Keir Starmer has issued a strong condemnation of former US President Donald Trump's plan to impose significant tariffs on the United Kingdom and several key NATO allies, a move linked to a demand for Washington to acquire Greenland.
A Transatlantic Trade Shockwave
The controversial proposal, announced by Trump on his Truth Social platform, would see a 10 per cent tariff applied to all UK goods exported to the US from 1 February 2026. This duty is slated to rise sharply to 25 per cent from June unless a deal is secured for the "complete and total purchase" of Greenland from Denmark.
The same punitive measures would apply to Denmark, France, Germany, the Netherlands, Norway, Sweden, and Finland. Starmer branded the plan as "completely wrong," stating the UK would raise the issue directly with the US administration. "Applying tariffs on allies for pursuing collective security of NATO allies is completely wrong," the Prime Minister said.
Security Justifications and European Backlash
Trump justified the drastic step by claiming Greenland is vital to global security, arguing that China and Russia are seeking influence in the Arctic. He stated the tariffs were necessary to protect "global peace and security" until a purchase deal is reached.
European leaders reacted with unified dismay, having received little to no warning. Swedish Prime Minister Ulf Kristersson said discussions were underway on a coordinated response, while French President Emmanuel Macron declared Europe would not bow to "intimidation." European Commission President Ursula von der Leyen warned the tariffs would "undermine transatlantic relations and risk a dangerous downward spiral."
Starmer reiterated the UK's firm position: "Our position on Greenland is very clear – it is part of the Kingdom of Denmark and its future is a matter for the Greenlanders and the Danes." This stance was echoed by Culture Secretary Lisa Nandy, who called the government's position "non-negotiable."
Economic Fallout and Inflation Fears
Business groups and analysts have warned the tariffs could derail fragile economic growth. Susannah Streeter, chief investment strategist at Wealth Club, described the move as "migraine inducing," noting it comes just as recent UK data had begun to show improvement.
The British Chambers of Commerce (BCC) cautioned the impact could be more severe than previous US tariff rounds, especially if the new duties are stacked on top of existing ones. William Bain, the BCC’s head of trade policy, said the effect on UK goods exports would be "significant."
Streeter also warned the policy could backfire on the US, forcing firms to pass higher costs to American consumers and potentially pushing up inflation, increasing pressure on the Federal Reserve.
The dispute erupts amid rising tensions over Greenland, where protests have occurred against any potential US takeover, and risks weakening NATO unity at a time of heightened geopolitical instability.
