How Trump’s obsession with Greenland could sink offshore wind

By Benjamin Storrow | 01/30/2025 06:20 AM EST

The flagging industry could face financial jeopardy if the president places tariffs on Denmark for refusing to hand over the island.

Donald Trump Jr. arrives in Nuuk, Greenland, earlier this month.  on January 7, 2025. Donald Trump Jr made a private visit to Greenland, a Danish autonomous territory coveted by Trump Sr and which hopes to one day be independent but remains dependent on Copenhagen for now. (Photo by Emil Stach / Ritzau Scanpix / AFP) / Denmark OUT (Photo by EMIL STACH/Ritzau Scanpix/AFP via Getty Images)

Donald Trump Jr. visited Greenland earlier this month, following the president's public appeal to take control of the Danish autonomous territory. Emil Stach/Ritzau Scanpix/AFP via Getty Images

Offshore wind developers have already been struggling with rising costs and President Donald Trump’s permitting freeze. Now add Greenland to their list of worries.

Rising tensions between the U.S. and Denmark over the Arctic island is another risk facing offshore wind projects planned along the East Coast. Trump reportedly threatened Danish Prime Minister Mette Frederiksen with tariffs after she rebuffed Trump’s offer to buy the gigantic island on a recent phone call.

Trump’s trade threat illustrates a growing danger to U.S. offshore wind projects. The vast majority of wind components are manufactured abroad — and in Denmark in particular. Five projects planned in U.S. waters have agreements to buy turbines from Vestas Wind Systems, a Danish company, or Siemens Gamesa, which makes wind turbines in Denmark.

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While some analysts believe Trump is blustering about slapping tariffs on Denmark, a longtime ally, they don’t doubt that he’s serious about erecting wider trade barriers to foreign goods. In a speech last weekend to congressional Republicans, Trump said new tariffs on products like steel are on the way.

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