Australia has publicly urged the United States against imposing punitive trade tariffs on European nations, as former President Donald Trump renews threats linked to his ambition to control Greenland.
Gallagher's Stance on Sovereignty and Sanctions
Finance Minister Katy Gallagher stated unequivocally that further sanctions from Washington would be "the wrong course." She reinforced the Australian government's position that the future of the vast Arctic territory is solely a matter for its people and Denmark. "We have been clear that the issue of Greenland is a matter for Greenland and Denmark," Gallagher affirmed on Sunday.
Addressing reports of impending US tariffs, she articulated Australia's long-held trade philosophy. "Our position on that has been clear, that we don't support tariffs. We support free trade," the minister declared, marking a clear divergence from the protectionist measures threatened by Trump.
Trump's Tariff Ultimatum and European Response
The diplomatic row escalated when Trump used social media to threaten a series of escalating tariffs on several European nations, including key allies Denmark, Germany, France, and the United Kingdom. He warned of a 10% tariff on all goods traded with the US starting next month, rising to a staggering 25% from 1 June.
Trump stated these measures would persist until "a Deal is reached for the Complete and Total purchase of Greenland." Justifying the move, he claimed the US had subsidised Denmark and the EU for decades by not charging import taxes, adding dramatically, "World Peace is at stake!"
In response, European NATO members, led by Denmark, have agreed to deploy troops to reinforce Greenland's security. Leaders across the continent, including UK Prime Minister Keir Starmer and French President Emmanuel Macron, have condemned the tariff threats.
Australia's Delicate Diplomatic Balancing Act
Gallagher's comments align with recent statements from Prime Minister Anthony Albanese and Foreign Minister Penny Wong, presenting a unified government front. The Labor administration has cautiously navigated the situation, avoiding direct public criticism of Trump's inflammatory rhetoric about acquiring Greenland "the easy way" or "the hard way."
This diplomatic caution exists despite Australia's deep strategic ties with the US, including the AUKUS submarine pact and a critical minerals deal signed during Albanese's White House visit last October. Foreign Minister Wong acknowledged that while the alliance is paramount, differences can arise. "Australia has its position, but we all understand the importance of continuing to maintain that alliance," she told Sky News.
When pressed on the potential ramifications for Australia's foreign and defence policy if Trump acted on his threats against NATO-member Denmark, Minister Gallagher declined to speculate, highlighting the sensitivity of the issue.
The situation underscores the complex challenges facing middle powers like Australia as they seek to uphold principles of sovereignty and free trade while managing vital security alliances in an increasingly volatile geopolitical landscape.
