Greenland’s Location, Ownership, Trump’s Interest, and Tariff Implications for the UK

President Trump’s announcement of steep tariffs on European allies, including the UK, has escalated tensions in an unusual diplomatic standoff centered on his desire to acquire Greenland from Denmark.

The tariffs, which will start at 10 percent on all UK goods entering the US from February 1 and increase to 25 percent by June, come as part of Trump’s pressure campaign to gain control of the strategically positioned island. Similar tariffs will apply to Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland—all NATO members who have opposed the proposed purchase.

Prime Minister Keir Starmer responded from Downing Street, calling for national unity and emphasizing that the dispute should be resolved through “calm discussion between allies” rather than military action or trade wars. Starmer received support from Opposition Leader Kemi Badenoch on the issue, highlighting the cross-party concern over Trump’s approach.

“Any decision about the future status of Greenland belongs to the people of Greenland and the Kingdom of Denmark alone. That right is fundamental,” Starmer stated, rejecting Trump’s economic pressure tactics as “completely wrong” and inappropriate between allies.

Greenland, while geographically part of North America and situated in the Arctic, has been under Danish influence since the early 18th century. The island was formally colonized in 1721 following an expedition led by Danish-Norwegian missionary Hans Egede, though it was first discovered by Norwegian explorer Erik the Red in 986.

The island’s political status has evolved significantly over the centuries. After being a Danish colony until 1953, it was redefined as a district of Denmark. In 1979, Greenland gained home rule following a referendum, and in 2009, it approved the Self-Government Act, which granted the island greater autonomy, particularly regarding energy resources. However, Denmark still controls foreign policy, defense, and security matters, and contributes approximately two-thirds of Greenland’s budget revenue.

The world’s largest island that isn’t classified as a continent has significant strategic value to the United States. Its geographic position offers advantages for early warning systems against potential missile attacks from Russia and enables monitoring of vessels in the Arctic region. During World War II, the US occupied Greenland from 1941 to 1945 to protect it from potential German invasion.

The American military presence continued after the war. In 1950, Denmark permitted the US to use Thule Air Base, which was expanded between 1951 and 1953 as part of NATO’s Cold War defense strategy. The base, now known as Pituffik Space Base, continues to operate as a missile monitoring station.

Beyond security considerations, Greenland’s substantial mineral wealth adds to its appeal as a potential acquisition for the United States, potentially providing access to rare earth elements and other natural resources that are increasingly important in modern technology and manufacturing.

The current tariff dispute puts the UK in a difficult position, caught between its closest security ally and its European partners. With UK-US trade valued at hundreds of billions of dollars annually, these tariffs could significantly impact British businesses already navigating post-Brexit trade adjustments.

While Starmer has ruled out engaging in a reciprocal trade war, the UK government faces mounting pressure to develop a coherent response strategy should the tariffs take effect as threatened. Economic analysts warn that certain sectors, particularly manufacturing, automobiles, and food exports, could face severe disruption if the dispute continues to escalate.