Irish businesses warned to brace for shocks over Greenland tariff
Irish businesses have been advised to maintain "a laser focus" on what they can control as fears grow of a damaging trade war between the US and the EU over Greenland.
Ireland has said it will stand with the EU countries caught in the crosshairs of US President Donald Trump, who insists the US needs to take control of the territory to guarantee US security.
Trump said he would target countries that did not support his push to take control of Greenland, which is part of the Kingdom of Denmark, with increased tariffs.
On Saturday, Trump announced he would impose 10% tariffs on the UK, Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland by 1 February. The tariffs would rise to 25% by 1 June.
In a statement at the weekend, Minister for Foreign Affairs Helen McEntee said the threat of tariffs was "completely unacceptable and deeply regrettable."
"Peace and security depend on all UN Member States abiding by the fundamental principles of the UN Charter.
"We have seen the appalling and unacceptable consequences when States do not do so. There can be no lasting peace and security in a world where these principles are ignored and undermined.
She added: "Ireland has been crystal clear that the future of Greenland is a matter to be determined by Denmark and by the Greenlandic people, in line with well-established democratic principles and international law.
"This is a position that will not change."
Aidan Meagher, EY Ireland Partner and Co-Head of Geopolitical Strategy, outlined the possible ways the growing row may play out.
“The announcement by President Trump that eight European countries will potentially face a 10% tariff on all goods exported to the United States beginning on 1 February, rising to 25% on 1 June, marks a steep escalation in transatlantic tensions, as the US administration is now openly linking trade penalties to territorial negotiations," said Mr Meagher.
"From a geopolitical, legal and economic standpoint, three issues now stand out:
"A key question is the statutory mechanism the US administration intends to rely on if it proceeds with this.
"If the White House seeks to use emergency economic powers such as IEEPA, it is possible that the Supreme Court may be forced to address the limits of such authority, with expedited consideration plausible given the scale and unilateral nature of the proposed measures.
"By potentially targeting tariffs at certain EU Member States and the UK, Washington is effectively stress‑testing the unity of the European bloc, as it acts as one customs union.
"Any attempt to divide EU partners on trade matters risks becoming a red‑line issue for Brussels, and we have seen that the EU has threatened to freeze the conclusion of the US trade deal, issue retaliatory tariffs, and even utilise the anti‑coercion instrument, which would restrict access to the European single market for US tech companies."
He continued: "Thirdly, the move raises questions about transatlantic security cooperation and the functioning of NATO, given the centrality of trust and predictable economic relations to defence partnerships.
Trump said he would target countries with increased tariffs if they opposed his push to take control of Greenland
"For businesses, the past 12 months have seen geopolitics move to the top of the boardroom agenda, and it would appear that 2026 will be the same.
"Businesses should have a laser focus on what they can control, including building internal resilience and scenario planning to withstand shocks in a multipolar world, strengthening supply chains, and seeking to diversify markets and supply chains.”
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