The standoff marked a sharp escalation in trans-Atlantic tensions on the anniversary of Trump’s inauguration, pulling Wall Street stocks lower and prompting some of Washington’s closest allies to warn openly of a rupture within the NATO alliance over the president’s continued campaign to bring Greenland under U.S. control.
WASHINGTON/DAVOS — European Union leaders warned Tuesday of sweeping countermeasures against the United States after President Donald Trump announced plans to impose 10 percent import tariffs on goods from eight European nations, framing the taxes as retaliation for those countries’ deployment of troops to Greenland in symbolic support of Danish sovereignty.
EU Commission President Ursula von der Leyen, speaking at the World Economic Forum in Davos, Switzerland, called the tariff plan a “mistake” and invoked the trans-Atlantic trade deal concluded the previous July. “The European Union and the United States have agreed to a trade deal last July,” she said in Davos. “And in politics as in business — a deal is a deal. And when friends shake hands, it must mean something.”
Von der Leyen warned that the EU’s response “will be unflinching, united and proportional,” and argued that trans-Atlantic friction would ultimately benefit shared adversaries. “We consider the people of the United States not just our allies, but our friends,” she said. “And plunging us into a downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape.”
The tariff announcement rattled global investors Tuesday, pulling Wall Street stocks lower as European leaders gathered in Davos.
Macron warns of ‘bazooka’
French President Emmanuel Macron warned in Davos that Trump’s additional tariffs could force the EU to deploy its anti-coercion instrument against the United States for the first time. The instrument — colloquially known as a trade “bazooka” — can sanction individuals or institutions found to be placing undue pressure on the bloc.
“Can you imagine that?” Macron said of that prospect, arguing that allied countries should instead be focusing on bringing peace to Ukraine. “This is crazy.” He described the mechanism as “a powerful instrument and we should not hesitate to deploy it in today’s tough environment.”
The EU holds two additional major economic tools it could use to pressure Washington: new tariffs of its own or a suspension of the existing U.S.-EU trade deal.
Trump, in a television interview that aired Tuesday evening, downplayed the retaliatory threat. “Anything they do with us, I’ll just meet it,” he said on NewsNation’s “Katie Pavlich Tonight.” “All I have to do is meet it, and it’s going to go ricocheting backward.”
Greenland and Denmark hold firm
Greenland’s Prime Minister Jens-Frederik Nielsen said at a news conference in the island’s capital, Nuuk, that “we need to have respect for international law and territorial integrity,” and expressed gratitude for EU allies’ support.
“International law, it’s not a game,” Nielsen said. He added: “We are willing to cooperate much more, but of course in mutual respect, and if we cannot see that, it will be very difficult to have a good and reliable partnership.”
Danish Prime Minister Mette Frederiksen addressed her country’s parliament with a grim assessment. “The worst may still be ahead of us,” she said. “We have never sought conflict. We have consistently sought cooperation.”
Greenland is a semiautonomous territory of Denmark, a founding NATO member. Trump has argued the U.S. needs Greenland to deter possible threats from China and Russia.
Allies warn of wider rupture
Canadian Prime Minister Mark Carney, speaking at Davos, warned of fractures extending beyond the Greenland dispute. He suggested it was an “illusion” and “fiction” that a rules-based international order continues to function as before. “Let me be direct: We are in the midst of a rupture, not a transition,” Carney said.
Belgian Prime Minister Bart De Wever said at Davos that Europe cannot be a “miserable slave to Trump.”
California Gov. Gavin Newsom, speaking on the sidelines of Davos, called Europe’s response to Trump’s tariff threats “pathetic” and “embarrassing,” and urged continental leaders to present a unified front. “It’s time to stand tall and firm, have a backbone,” said Newsom, a Democrat.
Swedish Defense Minister Pål Jonson said European countries have also looked at establishing a more permanent military presence in the Arctic to help guarantee security in the region, which he described as a key U.S. demand.
In Moscow, Russian Foreign Minister Sergey Lavrov strongly denied any intention by Russia and China to threaten Greenland, while also describing the island as a “colonial gain” for Denmark.
Trump heads to Davos, signals possible deal
Trump left Washington Tuesday — on the anniversary of his inauguration — for Davos, where he suggested an agreement might still be reachable. “I think that we will work something out where NATO is going to be very happy, and where we’re going to be very happy,” he said, without providing specifics.
Trump questioned the reliability of NATO allies, saying other members might not protect U.S. interests. “I just really do question whether or not they’ll come to ours,” he said.
Trump made an unusual appearance in the White House briefing room Tuesday and spoke at length while stocks fell. Asked how far he would be willing to go to acquire Greenland, Trump said only, “You’ll find out.” He did not respond when asked about using force. He also mistakenly referred to Greenland as Iceland at one point during the appearance.
When asked what he would do if the Supreme Court rules against his authority to impose tariffs in a case currently under consideration, Trump said: “Well, I’ll have to use something else. We have other alternatives.”
Trump had earlier posted a text message from Macron in which the French president suggested a Group of Seven meeting in Paris after the Davos gathering. An official close to Macron, who spoke anonymously in line with the French presidency’s customary practices, confirmed to the Associated Press that the message was genuine.