US tariff updates (Jan 1–20, 2026)
Greenland, Iran and China guide the Trump administration’s tariffs in January 2026.
Authors
Between 1 and 20 January 2026 the United States shifted from episodic tariff skirmishes shaped by domestic political interests to an openly geopoliticised tariff doctrine. Tariffs were deployed as strategic leverage tied to U.S. foreign policy objectives in Iran and Greenland. The Trump administration has often claimed that tariffs serve as leverage in foreign conflicts. This time they were used directly to achieve immediate U.S. interests.
Politically the period was marked by high profile threats that blurred diplomacy and trade. President Trump publicly threatened 10 % tariffs from February 1 with escalation to 25 % from June 1 on several European countries. This followed reports of European troop deployments to Greenland. The move appeared aimed at deterring U.S. ambitions in the region. The tariff threat prompted emergency EU consultations and strong warnings of retaliation. The EU discussed invoking its Anti Coercion Instrument. It also considered contingency tariffs on roughly 93 billion euros of U.S. goods.
At the same time Washington signalled a harsher posture towards countries trading with Iran. Administration messaging and press reporting pointed to secondary tariff exposure of up to 25 %. The risk applied to partners seen as maintaining material trade ties with Iran. The threat aimed to enforce sanctions through trade coercion rather than diplomacy alone. Iran linked ties were reframed as tariff vulnerabilities.
On policy instruments the Trump administration leaned on Section 232 style national security authorities. The aim was to institutionalise supply chain leverage without immediate blanket tariffs. A January 14 proclamation concluded a Section 232 probe into processed critical minerals. It directed negotiations and monitoring of imports. It also left open further action within 180 days. This signalled that tariff ceilings, quotas and negotiated agreements would come first. Immediate wide tariffs were not the opening move. The focus covered critical minerals, semiconductors and related inputs.
Strategic supply chain initiatives were folded into tariff politics. Pax-Silica, the U.S. effort to bind trusted partners into resilient AI, semiconductor and mineral supply chains, was signed on December 12, 2025. Recent comments on the inclusion of India revived debate over the bloc’s relevance and reliability. The issue also gained weight amid ongoing India U.S. trade talks. These talks hit a hurdle after U.S. legislators flagged India’s 30 % tariff hikes on U.S. pulses announced in November 2025.
This brief reflects how tariffs evolved into strategic instruments this month. To follow Trump administration tariff announcements, threats and related moves in real time and understand these instruments further, visit The US trade Tracker and know more.