How Trump’s Greenland threats could spark a new trade war

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Apple News Today 15 min 7 speakers 3 chapters transcribed
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Shumita Basu 0:00
Hey there, it's Shamita. I've got a quick request for you. If Apple News Today is an essential part of your morning routine, follow the show in Apple Podcasts. And if you have another 30 seconds, leave us a rating and a review too. It helps other people find our show and it helps us know what you like about it. Thanks. Good morning. President Trump's tariff threats against Europe over Greenland raises tensions.
Unknown 0:28
Europe has to step up, Europe has to be strong, and Europe has to make sure that the threats that have been imposed don't become reality.
Shumita Basu 0:39
The Wall Street Journal explains how a U.S. trade war with its closest allies could unfold. The Washington Post walks us through some of the ways in which Trump is pushing to change election processes before the midterms. And the wealth tax proposal that's causing a revolt among Silicon Valley's elite. It's Tuesday, January 20th. I'm Shmeeta Basu. This is Apple News Today. The world got a firsthand look at how President Trump has been talking to European leaders about Greenland behind the scenes yesterday. Over the weekend, a text exchange between Trump and Norway's prime minister, Jonas Garstora, revealed he was explicitly tying the Nobel Peace Prize to his demands to acquire Greenland. Referring to the committee's decision to award the prize to someone else, Trump said, quote, I no longer feel an obligation to think purely of peace and that he could now, quote, think about what is good and proper for the United States.
Shumita Basu 1:42
Prime Minister Stora spoke to reporters after having shared the text publicly.
Unknown 1:47
He is very concerned about the Nobel Prize.
Shumita Basu 1:50
He described Trump as being very preoccupied with the Peace Prize and that he'd repeatedly explained that it's decided by an independent committee, not his government. The issue of Greenland has become a full-blown crisis for Europe and is causing a major rupture in the NATO alliance.

How is President Trump's Greenland proposal tied to the Nobel Peace Prize?

Shumita Basu 2:10
Trump has now threatened tariffs against several European countries, which could affect the price of everything from French wines and cheeses to German cars to pharmaceuticals. Last Sunday, Treasury Secretary Scott Besant told NBC the U.S. wanted this strategically important Greenland to deter adversaries.
Unknown 2:29
Peace through strength. Make it part of the United States. And there will not be a conflict because the United States right now, we are the hottest country in the world. We are the strongest country in the world. Europeans project weakness. The U.S. projects strength.
Shumita Basu 2:43
The threat of tariffs has now raised the prospect of tit-for-tat escalation that could hurt consumers on both sides of the Atlantic.
Kim Mackrael 2:51
European officials are taking comments like this, comments about Greenland, comments about the tariffs. They're taking those extremely seriously.
Shumita Basu 3:01
Kim McRae is a Brussels-based reporter for The Wall Street Journal. She told us European leaders are now considering a range of options to fight back. They could refuse to sign last year's trade agreement to eliminate European tariffs on some American exports. Or they could dust off old retaliatory tariff lists prepared during a fight with Trump last year. That includes duties on things like American whiskey, peanut butter, and chewing gum, as well as industrial products. McRale says a last resort that has also been floated is something that has come to be known as the bazooka.
Kim Mackrael 3:35
The slightly more formal word for it or term for it is the anti-coercion instrument. It's considered a last resort because it gives the EU such wide leeway to act in a number of areas, such as export controls. They could put tariffs on services, potentially. They could restrict intellectual property rights, curb the ability of American companies to bid on public contracts in Europe. So just this huge suite of possibilities. Not something anyone in the EU takes lightly.
Shumita Basu 4:07
So far, McRaehl says European leaders have sought to avoid escalation with Trump. The U.S. remains the continent's most important trading partner, and some fear Trump could use U.S. support for Ukraine as leverage. But the language has hardened.

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