Culture Secretary Lisa Nandy said the UK will not compromise on its position that Greenland’s future is for Greenlanders and the Kingdom of Denmark to decide. She called for a more “adult” conversation with Washington after President Trump threatened new duties on allied exports, starting at 10% on 1 February and potentially rising to 25% by June. ([theguardian.com](Link

Eight European nations - Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the UK - answered with a joint statement warning tariff threats “undermine transatlantic relations and risk a dangerous downward spiral”, pledging full solidarity with Denmark and the people of Greenland. The Associated Press carried the statement in full on Sunday. ([apnews.com](Link

In his post announcing the plan, President Trump said the duties would remain “until such time as a deal is reached for the complete and total purchase of Greenland”, while adding the US is open to negotiation. He also criticised allied troop movements linked to a pre‑planned Danish‑led exercise. ([livemint.com](Link

For investors, the mechanics are straightforward: US importers pay the tariff at the border, and the cost is then shared through higher prices or squeezed margins along the supply chain. Either way, British goods become less competitive in the world’s largest consumer market until a deal is struck or an exemption is secured. ([abcnews.go.com](Link

How exposed is the UK in goods trade? Office for National Statistics data show British firms shipped £59.3bn of goods to the US in 2024. Top categories were cars (£9.0bn), medicinal and pharmaceutical products (£6.6bn) and mechanical power generators, such as turbines and engines (£4.6bn). Services exports were far larger at roughly £139bn in the four quarters to Q1 2025, but the proposed duties target goods. ([ons.gov.uk](Link

On a simple run‑rate, a blanket 10% tariff on UK goods would add roughly £6bn a year in costs to shipments if volumes hold steady; at 25%, the burden could approach £15bn. The auto sector is already dealing with a separate 25% US tariff on imported cars implemented in April 2025, and it is not yet clear whether the new duties would stack on top for vehicles and parts. ([whitehouse.gov](Link

The read‑across is sharpest for premium carmakers and niche engineers that sell into North America. The US took 27% of UK car exports in 2024, amplifying sensitivity to any extra levy. Pharma and medtech shipments tend to be stickier in demand, but contracts will still be re‑priced to decide who pays the tariff. ([ons.gov.uk](Link

Politically, London is signalling firmness without escalation. Prime Minister Keir Starmer called the tariff plan “completely wrong” and said the UK would raise it directly with the US administration; Nandy reiterated that sovereignty over Greenland is non‑negotiable. On the continent, President Macron is urging the EU to ready its anti‑coercion instrument should Washington proceed. ([theguardian.com](Link

European capitals also underlined that their recent presence in Greenland was part of a Danish‑led exercise focused on Arctic security and posed no threat - and that any concerns should be handled inside NATO rather than via tariffs. ([abc.net.au](Link

What to watch next: any softening in the White House message; the legal text when the tariff order is filed; whether Brussels prepares counter‑measures; and early‑February trade flows for signs of diversion or demand destruction. For UK SMEs, the near‑term job is practical - confirm Incoterms with US buyers, re‑price to reflect duty, and consider hedge cover for longer lead‑time orders.