Donald Trump is once again pressuring Denmark to sell Greenland to him. In a phone call with Danish Prime Minister Mette Frederiksen, he made it clear that he wanted to buy Greenland. When Frederiksen refused, he threatened that Denmark would face high tariffs, or worse, a trade boycott if it didn’t comply.
But such a threat if enacted would not be a major problem for Denmark. In fact, if I were Frederiksen, I’d call Trump’s bluff.
Denmark isn’t exactly a country that needs US trade to survive. It only makes $5.54 billion in US trade, which is around 1.4% of Denmark's GDP. In 2020, the COVID-19 pandemic put a real strain on its economy, but the country bounced back quicker than many others. The GDP dropped by about 3.6% (a larger percentage than the 1.4% it makes from US trade), but due to wise fiscal policies it was able to recover and build momentum for future growth.
The pandemic also pushed Denmark forward in other ways—such as embracing innovation, digital transformation and making industries more diverse. The service sector did take a hit, but adapted quickly, and industries like renewable energy, digital services and pharmaceuticals thrived.
So, if Denmark can survive a global health crisis and come out on top, it’s more than capable of handling a trade threat from a country like the US. The strategy for Denmark is clear: call Trump's bluff, knowing that his threats will have no effect on its economy.
Also, if Trump imposes sanctions, Denmark could tap into EU support, which would soften the blow. And with Denmark’s leadership in green technology and sustainable industries, it’s well-placed to attract investment from other parts of the world, further solidifying its place as a global leader in the future of energy and innovation.
By calling Trump’s bluff, Denmark will send a powerful message, signalling that small countries don’t need to buckle under pressure.
