A 3D-printed miniature model of U.S. President Donald Trump and flags of eight European countries potentially facing U.S. tariffs after Trump said he may put a tariff on countries that do not support his plan for the United States to control Greenland, in this illustration taken January 17, 2026. REUTERS/Dado Ruvic/Illustration
| Photo Credit:
Dado Ruvic
US President Donald Trump’s move to slap tariffs on European allies over the Greenland dispute serves as a ‘red alert’ for India, with trade experts warning New Delhi to guard its strategic autonomy and core interests in ongoing trade negotiations with Washington
“The core takeaway is restraint; do not trade strategic autonomy for promises that recent history shows can be withdrawn overnight,” said Ajay Srivastava from Delhi-based think-tank Global Trade and Research Initiative (GTRI).
On Saturday, Trump announced a 10 per cent tariff on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland after these countries backed Denmark’s refusal to allow US acquisition of Greenland. The tariffs are scheduled to take effect on February 1, 2026, and are set to increase to 25 per cent on June 1, 2026, if a deal for the “complete and total purchase of Greenland” is not reached.
“There is no point in giving in to every whim and fancy of Trump in the India-US trade deal being negotiated. It is now being proved that the US demands would continue. So, it is imperative that India protect its core demands, deal or no deal,” said trade expert Biswajit Dhar.
The US imposed 50 per cent import tariffs on most Indian goods in August 2025, which includes a 25 per cent penalty for buying Russian oil. Indian exporters to the US, mostly of labour intensive items such as textile and leather, are finding it difficult to compete with countries such as Vietnam, Bangladesh and Indonesia that are facing lower tariffs of 19-20 per cent.
India has been negotiating a trade deal with the US for close to a year but demands such as market access for American corn and soya, which are mostly of the genetically modified (GM) variety not allowed in India, have been delaying it.
India is keen for a deal as the US is its largest export market with annual exports in FY25 at $186.51 billion (about 19 per cent of total goods exports), but has been protecting its “red lines” so far.
Ajay Srivastava, Founder, Global Trade Research Initiative.
| Photo Credit: BIJOY GHOSH
“The Greenland episode offers a clear lesson to India highlighting that trade deals with the US are not a shield against coercion,” Srivastava noted.
While the US had signed a limited trade pact with the UK in June last year, it had also reached a framework agreement on an ambitious deal with the EU in July, which the bloc put on hold on Sunday in response to Trump’s tariff threats.
Published on January 18, 2026
