Prime Minister Mark Carney's government is actively considering a plan to send a contingent of Canadian Armed Forces personnel to Greenland to participate in upcoming NATO military exercises, a decision that could provoke significant economic retaliation from the United States.
Carney's Delicate Diplomatic Balancing Act
The potential deployment, which would see a small number of Canadian troops join forces from the United Kingdom, France, Denmark, and other allied nations, is currently in the draft planning stages. According to a source familiar with the confidential discussions, who spoke on condition of anonymity, Carney has not yet made a final decision on the matter.
This deliberation comes against a backdrop of stark warnings from Washington. Former U.S. President Donald Trump has announced a 10% tariff on eight European nations for their stated intention to hold symbolic NATO drills in Greenland. This levy is scheduled to escalate to 25% in June 2026, creating a substantial economic threat.
International Backlash and Canadian Concerns
The U.S. tariff threat has triggered a wave of pushback across Europe. European Union leaders are preparing for an emergency summit to discuss potential countermeasures, including retaliatory tariffs. British Prime Minister Keir Starmer conveyed the international community's displeasure directly to Trump in a call on Sunday, labeling the tariff maneuver as "wrong."
Prime Minister Carney, speaking from Doha, Qatar, after a visit to China, emphasized Canada's stance on sovereignty. "Greenland's future is for Denmark and Greenland to decide," Carney stated, adding he would reiterate that position to Trump if they speak. He called the situation "serious" and expressed clear concern about the escalation.
"We always will support sovereignty and territorial integrity of countries, wherever their geographic location is," Carney affirmed, noting that Greenland's security falls under NATO's responsibility. He confirmed he has been in contact with European leaders and NATO partners regarding the issue.
High Stakes for the Canadian Economy
The decision carries profound economic risks for Canada. Nearly 70% of Canada's goods exports are destined for the U.S. market, making it exceptionally vulnerable to American trade policy. Trump has already imposed significant tariffs on Canadian products, including a 25% duty nearly a year ago that was raised to 35% in August 2025, though many items remain exempt under the Canada-U.S.-Mexico Agreement (CUSMA).
The political drama is set to move to the World Economic Forum in Davos, Switzerland, where both Carney and Trump are scheduled to attend. It remains uncertain whether the two leaders will hold a bilateral meeting to discuss the Greenland issue directly.
As the Canadian government weighs its commitment to NATO allies against the potential for severe economic consequences, the world watches to see if Ottawa will stand with Europe in defiance of Washington's tariff threats.
