The dispute over the Arctic island of Greenland has reached a new, threatening level. The weekend DAX came under pressure after the record rally at the start of the year.
Trade war to enforce territorial claims
US President Donald Trump has made his threats against countries that oppose his plans to integrate Greenland into the USA massively more specific. In a post on the Truth Social platform on January 17, 2026, he accused Denmark and the European Union of having been subsidized by the USA for decades without providing adequate compensation. “It is time for Denmark to give back – world peace is at stake,” the president wrote, reinforcing his claim to the Arctic island.
As a direct consequence, Trump announced that he would impose a punitive tariff of initially 10 percent on all goods from Denmark and other European countries from February 1, 2026. In addition to Denmark, Germany, France, Norway, Sweden, the United Kingdom, the Netherlands and Finland are specifically affected. If an agreement on the “full and total purchase of Greenland” is not reached by June 1, 2026, this tariff will rise to 25 percent.
“The Golden Dome” and military presence
Trump justifies the urgency of the takeover with national security interests. He referred to the highly complex missile defense system “The Golden Dome”, which costs hundreds of billions of dollars and can only achieve maximum efficiency if Greenlandic territory is included. According to Trump, the situation is extremely dangerous for the “survival of our planet” due to the ambitions of Russia and China. He accused the European states of having recently visited Greenland for “unknown purposes” and thus taking an untenable risk.
Despite the threats, Germany and other NATO partners are sticking to their mission. A team of Bundeswehr 15 soldiers have already reached the Greenlandic capital Nuuk to make preparations for possible military exercises. The federal government is also examining options such as naval reconnaissance flights or sending frigates. In Berlin it was said that they wanted to clarify to what extent NATO could contribute to the security of the Arctic, while at the same time US parliamentarians in Copenhagen tried to “lower the temperature” and declare Greenland an ally instead of a possession.
Market reaction: Weekend DAX under selling pressure
The recent escalation in the transatlantic trade relationship is leaving clear marks on the financial markets. After the impressive record rally at the beginning of the year, the prospect of a trade war with the USA is causing disillusionment among investors. The weekend DAX calculated by broker IG temporarily fell by 1.09 percent as a result of Trump’s statements. The indicator is therefore trading close to the psychologically important 25,500 point mark. This could be seen as a harbinger of a turbulent start to the week on the German stock market, as export-oriented German companies in particular would be massively burdened by the threatened 10 percent tariffs.
Diplomatic tensions and outlook
The tense situation is flanked by a diplomatic scandal in neighboring Iceland. Trump-nominated US Ambassador Billy Long had joked that Iceland could become the 52nd US state, sparking official protests in Reykjavik. While US government spokeswoman Karoline Leavitt emphasizes that European soldiers would not influence the president’s decision-making process, according to the current ZDF political barometer, a majority of Germans (78 percent) see the continued existence of NATO at risk from Trump’s policies. Investors are now looking forward to the opening of regular trading venues on Tuesday, as US stock exchanges will be closed on Monday due to Martin Luther King Day.
Editorial staff at finanzen.net with material from dpa-AFX