Trump's tariff sword turns to stab allies: starting from February 1st, a uniform +10% tariff will be imposed on all goods from eight countries including Denmark, and it will soar to 25% on June 1st until the acquisition of Greenland is finalized; the EU immediately rallies to prepare for counterattack. At the same moment, US Treasury Secretary Mnuchin declared - the Supreme Court will not stand in the way, the huge trade deficit is equivalent to a "national emergency", and the tariff toolbox is completely open.

S President Trump said on Saturday that unless an agreement to purchase Greenland is reached, the United States will impose new tariffs on several European countries. 

He said that starting from February 1, a 10% tariff would be imposed on "any goods" from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, and it would be raised to 25% on June 1 until an agreement is reached. 

• Starting from February 1, 2026, a 10% tariff will be imposed.

• Starting from June 1, 2026, the tariff rate will be raised to 25%.

• The countries subject to the tariffs: Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. 

The conditions for the tariff to take effect: "The tariff will remain in effect until an agreement is reached on the complete and thorough sale of Greenland to the United States." 

Among the aforementioned countries, there are key links in the semiconductor supply chain, such as the Netherlands, Germany and France. And the European automotive industry might be an even more obvious target. However, the entire market is accustomed to TACO and has seen Trump use tariffs as a tool and weapon rather than the true objective itself. But this time, the objective is Greenland.

The legality of Trump's current tariff policy is under review by the US Supreme Court, with the focus on whether his imposition of tariffs based on the International Emergency Economic Powers Act of 1977 (IEEPA) exceeded his authority. Previously, lower courts have ruled that Trump overstepped his bounds, arguing that the statute does not grant the power to impose tariffs. 

The Supreme Court could issue its ruling as early as Tuesday and release its opinion the next day, but it has also delayed major decisions until the summer in the past. The market is closely watching this ruling. If the ruling is unfavorable to Trump, his power to impose such tariffs will be weakened.

In response to this, US Treasury Secretary Mnuchin stated that the Supreme Court is unlikely to reject this landmark economic policy of Trump. Even if the relevant authorization under IEEPA is rejected, the government can still impose tariffs based on other legal grounds. He also said that the imposition of tariffs on Europe this time is a strategic decision to deal with the national emergency, aiming to avoid hot wars through economic strength. While Trump stated outright that if the IEEPA tariff authorization is overturned, the US economy will suffer losses.