New US-Europe Trade Spat Erupts Over Greenland

The US argues control over Greenland will be crucial to its defence strategy. File Image / Pixabay

New trade tensions have emerged between the US and Europe over control over Greenland, with the Port of Rotterdam likely to take a hit from the conflict.

The US will impose an extra 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland from February 1, President Donald Trump said in a social media post late on Saturday.

The extra rate will be increased to 25% from June 1, and will continue until a deal is reached for the US to acquire Greenland, President Trump said.

The eight countries named have jointly deployed troops to Greenland this month in an apparent response to tougher rhetoric from the Trump Administration over the future of the Danish territory. The US argues control over Greenland will be crucial to its defence strategy.

"These countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable," President Trump said.

"The United States of America is immediately open to negotiation with Denmark and/or any of these countries that have put so much at risk."

The EU is considering suspending its trade deal with the US over the new tariffs, news agency Bloomberg reported.

For the shipping and bunker industries, the most likely impact to be seen in Europe will be on the Port of Rotterdam, Europe's largest bunkering location and a key hub for transatlantic trade. But it should be noted that over the past year under the new US administration's trade policy, the biggest impact in bunker volumes from fights over tariffs has been observed at US ports.