EU Council convene extraordinary meeting to address Trump Greenland tariff demands

Brussels (Brussels Morning Newspaper) January 19, 2026 – European Council President António Costa announced an extraordinary summit of EU heads of state and government on January 22 to address US President Donald Trump’s tariff threats against Greenland exports. The meeting responds to Denmark’s request for EU solidarity against Trump’s proposed 100 percent tariffs unless sovereignty transfer negotiations begin. Commission President Ursula von der Leyen confirmed defence clause activation with member states united on territorial integrity protection against economic coercion.

Trump reiterated Greenland acquisition demands January 17 linking 100 percent tariffs to Denmark’s refusal with Greenland holding 25 percent of global rare earth reserves vital for defence technology and green energy supply chains. Danish Prime Minister Mette Frederiksen condemned the proposal as economic coercion violating WTO rules while Greenland’s government asserted sovereign control over resources.

Tymofiy Mylovanov quoted Costa’s summit remarks. Tymofiy Mylovanov said in X post,

“EU leaders will hold an emergency summit this week. President of the European Council, Antonio Costa: The EU is ready to defend ourselves against any form of coercion. Greenland is a red line. We cannot hand it over. Pandora’s Box is open. 2/”

EU leaders will hold an emergency summit this week.

President of the European Council, Antonio Costa: The EU is ready to defend ourselves against any form of coercion. Greenland is a red line. We cannot hand it over. Pandora’s Box is open. 2/

— Tymofiy Mylovanov (@Mylovanov) January 19, 2026

Trump tariff announcement ties trade to sovereignty transfer

President Trump stated January 17 White House remarks that Denmark faces 100 percent tariffs on Greenland exports if sovereignty transfer negotiations do not commence citing Arctic strategic position and rare earth minerals essential for US defence supply chains. The proposal follows Denmark’s rejection of Trump’s November 2025 acquisition offer with Greenland Naalakkersuisut government confirming resource sovereignty under Danish Realm constitutional framework.

USTR initiated Section 301 investigation notifying WTO of national security concerns under GATT Article XXI allowing tariff imposition without retaliation risk documentation. White House estimated Greenland rare earth deposits could supply 30 percent US demand reducing China dependency currently 80 percent global processing capacity control.

Danish government rejects proposal seeks eu solidarity

Danish Prime Minister Mette Frederiksen called the tariff plan economic coercion January 18 summoning US ambassador and requesting EU extraordinary council meeting for unified response. Denmark confirmed Greenland Home Rule Government’s sovereign resource rights with €450 million annual EU partnership supporting fisheries development and raw materials cooperation.

Foreign Minister Lars Løkke Rasmussen scheduled White House talks with Vice President JD Vance and Secretary Marco Rubio January 20 to de-escalate tensions while preparing WTO consultations challenging US national security claims as protectionism disguised pretext.

European council president costa summit coordination

António Costa completed consultations with 27 EU leaders announcing January 22 Brussels summit to formulate collective response protecting territorial integrity and trade interests. Costa emphasised EU readiness to defend against coercion with Greenland sovereignty declared red line preventing Pandora’s Box of territorial disputes opening across member states dependencies.

The summit agenda includes activating EU-Denmark defence clause potential trade defence instruments like safeguards and countervailing duties plus WTO dispute initiation proportionality ensuring response matches US actions scale.

Amal Mudallali summarised Costa consultations outcome. Amal Mudallali said in X post,

“The president of the EU Council on the result of his consultations with the EU membership on Greenland says they are committed to defending themselves against “coercion”, but also committed to constructive dialogue. But the main thing they highlight is their unity around sovereignty and territorial integrity (meaning that of Greenland I assume) which means the standoff will escalate in the coming days and weeks.”

The president of the EU Council on the result of his consultations with the EU membership on Greenland says they are committed to defending themselves against “coercion”, but also committed to constructive dialogue. But the main thing they highlight is their unity around… https://t.co/YrgdFbttuB

— Amal Mudallali (@AmbMudallali) January 19, 2026

Commission activates EU-denmark defence clause consultations

Ursula von der Leyen convened commissioners January 19 confirming defence clause activation under EU-Denmark treaty protecting against external pressure threatening member state integrity. Trade Commissioner Maroš Šefčovič initiated impact assessment projecting €1.2 billion losses to Greenland-EU trade fisheries pharmaceuticals rare earths with countermeasures preparation.

DG Trade recommended WTO consultations alongside safeguard measures on US goods proportionality principle compliance ensuring EU response calibrated to tariff scope avoiding escalation while signalling resolve.

Greenland government asserts resource sovereignty rights

Prime Minister Jens-Frederik Nielsen stated January 18 Naalakkersuisut controls mineral resources rejecting US acquisition demands as colonial relic incompatible self-determination principles. Greenland paused US exploration licences redirecting permits to EU Canadian Australian firms supporting €250 million raw materials investments.

Fisheries exports €2.2 billion annually 92 percent to EU face tariff disruption with government seeking protocol extension market access guarantee amid diversification into tourism sustainable mining Arctic research.

WTO dispute settlement path consultations initiation

Denmark WTO mission requested consultations January 20 challenging Section 301 national security justification as GATT XXI abuse with EU reserving third party rights collective defence. Process allows 60 days negotiation before panel request 12-month adjudication timeline interim countermeasures suspension pending outcome.

EU precedent Canada softwood lumber disputes demonstrated successful national security claim rebuttals with experts noting Greenland WTO membership absence Denmark representation adequacy under association agreement.

Rare earth supply chain vulnerability eu diversification

Greenland holds 11 largest undeveloped rare earth deposits vital neodymium praseodymium dysprosium EV batteries wind turbines fighter jets with EU Critical Raw Materials Act mandating 10 percent extraction 40 percent processing domestic capacity by 2030. Commission accelerated projects including Sweden separation plant Norway mining operations supply security enhancement.

Tariff threat accelerates diversification to Australia Lynas Canada Vital Metals with EU battery passport regulation traceability enforcement recycling targets 16 percent collection rate magnet recovery scaling.

Member states align support denmark greenland solidarity

Germany France Italy pledged diplomatic economic support Denmark activating trade policy committee coordination countermeasures preparation proportionality ensuring response matches US tariff scope. Baltic states Sweden Finland highlighted Arctic security implications NATO coordination Denmark defence commitments fulfilment.

Poland Hungary aligned EU consensus despite US ties prioritising collective territorial integrity principle preventing precedent for other dependencies overseas territories.

Von der leyen greenland strategic partnership reaffirmation

Commission President visited Nuuk January 10 reaffirming €225 million 2021-2027 sustainable development funding green growth education critical raw materials cooperation frameworks Danish Realm respect. Partnership includes environmental standards technology transfer local content 45 percent Greenlandic workforce training sustainable development enforcement.

Von der Leyen emphasised EU reliable partner raw materials climate research Arctic security with Global Gateway €250 million minerals investment Anaa Kvanefjeld deposits reducing China rare earth processing dominance green transition supply diversification.

US national security justification gatt xxi precedent

Trump administration invoked GATT Article XXI national security exception precedent steel aluminium tariffs 2018 accepted WTO despite dispute with USTR arguing Greenland minerals essential F-35 missiles Virginia-class submarines defence industrial base resilience. Fact sheet projected 20 percent US rare earth import reliance reduction Greenland access strategic stockpile replenishment federal procurement localisation.

Critics noted WTO panel Canada WTO 2000 rejected similar broad security claims requiring imminent threat nexus specific defence contracts documentation procedural rigour compliance.

Nato denmark alliance coordination arctic domain

Denmark coordinates NATO Arctic Command Nuuk operations Greenland Pituffik Thule Air Base US Space Force radar icebreaker search rescue ally coordination EU trade security linkages. Trump Greenland interest NATO burden sharing leverage Denmark 2 percent GDP defence spending fulfilment acceleration Arctic presence enhancement Russian military infrastructure response.

Greenlandic government maintains Danish Realm defence responsibilities resource sovereignty neutrality foreign military basing restrictions US Space Force operations grandfathered grandfathered status constitutional arrangements preservation.

Commission dg trade economic modelling tariff impacts

DG Trade modelling projected 100 percent tariffs €1.2 billion Greenland-EU losses 8 percent GDP contraction pharmaceutical 15 percent fisheries displacement EU import substitution Australia Canada Africa sourcing diversification imperatives. Supply chain mapping neodymium dysprosium concentration risk mitigation Critical Raw Materials Act task force early warning stakeholder industry coordination member states implementation.

Battery Passport Regulation traceability localisation enforcement recycling 16 percent 2030 collection magnet recovery technologies demonstration coordination EU processing capacity 40 percent target advancement execution.

Folketing parliamentary authorisation trade defence measures

Denmark Folketing January 20 extraordinary session Greenland solidarity resolution EU trade defence activation authorisation national implementation coordination execution. Frederiksen government seeks confidence vote unified front economic coercion rejection sovereignty protection WTO dispute coordination transparency accountability parliamentary oversight fulfilment.

Danish Industry Confederation stakeholders tariff mitigation EU response support market access preservation supply chain continuity planning coordination sustainable fisheries tourism Arctic research diversification imperatives execution.

EU strategic autonomy raw materials act acceleration

The acceleration of EU strategic autonomy under the Critical Raw Materials Act (CRMA) and the EU Battery Regulation hinges on rapidly operationalising extraction, processing and recycling capacities while mitigating geopolitical and trade risks. The CRMA’s 2030 benchmarks at least 10 percent of annual EU consumption to come from domestic extraction and 40 percent from EU-based processing require compressing permitting timelines, de‑risking investments and creating an integrated project pipeline across mining, refining and midstream processing. 

Fast‑tracking projects in resource‑rich member states such as Sweden and Finland, alongside closer integration with EEA partners like Norway and associated territories such as Greenland, is central to reducing exposure to single‑supplier dependencies, especially for rare earths, nickel, cobalt and battery‑grade lithium. At the same time, tariff and trade risks associated with Greenlandic and other associated‑territory exports necessitate stable customs arrangements, rules‑of‑origin clarity and WTO‑compatible support schemes to ensure that strategic raw materials enter EU value chains without legal uncertainty or cost shocks.