International credit rating agency Fitch Ratings said the threat of new U.S. tariffs related to Greenland, coupled with the possibility of European countermeasures, marks a significant escalation in transatlantic tensions, with implications that extend beyond trade to growth, defense spending and geopolitical stability.
As previously reported by SteelOrbis , US President Donald Trump announced plans to impose an additional 10 percent tariff on Denmark and seven other European countries on February 1, with the rate rising to 25 percent on June 1, remaining in effect until an agreement is reached on the full purchase of Greenland. Fitch assumes that any such tariffs would be levied on top of existing duties.
Prospects for Implementation of Cloud Legal Uncertainty
Fitch emphasized that the actual implementation of the proposed tariffs remains highly uncertain. The likely legal basis, the International Emergency Economic Powers Act, is currently before the US Supreme Court. Even if a court rules against its use, Fitch noted that alternative legal tools could potentially be used.
The agency also flagged potential domestic resistance in the U.S., given inflation concerns and the broader geopolitical implications of escalating trade tensions with Europe.
Potential economic impact on Europe
From a macroeconomic point of view, according to Fitch estimates, 10
