Trump’s Greenland Tariff Threats to NATO Allies - What It Means for Gold, Silver and Dalal Street

Key Highlights

• Denmark and its European allies swiftly rejected the demand, triggering a rare show of unity across Europe and drawing criticism from both European leaders and some US lawmakers. Adding to the uncertainty, the US Supreme Court is currently weighing whether to overturn the legal authority Trump has previously used to threaten tariffs under the International Emergency Economic Powers Act.
• A ruling against the administration could complicate or delay the implementation of the proposed levies.
• If enacted, the new duties would likely be imposed on top of existing tariffs — currently 10% on UK imports and 15% on EU goods — raising the risk of retaliation and broader trade disruptions.
• While tariffs are formally paid by importers, the costs are often passed on to consumers, muddying the global inflation outlook. Safe-haven demand returnsFor investors, the immediate response has been renewed interest in safe-haven assets.
• Market participants say the Greenland tariff threat risks escalating geopolitical tensions, an environment that typically supports precious metals. Jateen Trivedi, VP–Research Analyst (Commodity & Currency) at LKP Securities, said gold has remained resilient amid multiple global flashpoints.