Europe Deliberates Over Greenland

Trump's promises to take Greenland as US territory have spiked tensions between Europe and America. Recently, President Donald Trump threatened to impose a 10% tariff rate on eight European countries that sent troops to Greenland. These countries—Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain—would all have their tariff rate rise to 25% if a Greenland deal isn't struck by June 1 of this year. In response, world leaders responded in indignation. Emmanuel Macron, the President of France, claimed that “No intimation nor threat will influence us, neither in Ukraine, nor in Greenland nor anywhere else.” Further European leaders, like Ulf Kristersson, Sweden’s Prime Minister, and Ursula von der Leyen, the President of the European Commission, have also expressed their anger at Trump’s new policy. For that exact reason, the danger of a NATO ally using economic power to force a diplomatic concession forced an EU summit to occur just this weekend. Importantly, the EU is planning to strike back at the US with $93 billion in tariffs.  Moreover, during the European Union meeting, the countries plotted using an anti-coercion instrument, which is also known as a "trade bazooka." 

The trade bazooka could block some of America’s access to EU markets or impose export controls, among a broader list of potential countermeasures. This sets a dramatically new tone for multilateralism. In the Trump era, where isolationism is dominant, Trump is always quick to utilize tariffs to obtain the upper hand. But finally, investors as well as individuals are beginning to lose faith in Trump’s strategy. That's because in times of policy conflict, the strength of the dollar actually decreases, not increases, when it occurs. These coupled economic tensions create uncertainty over whether Trump will follow through with his threats, or if they’re a veiled attempt at international coercion.

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• Stephen Groves, Associated Press

• David Rising, The Guardian

• Tim Lister, CNN News