President Donald Trump’s pledge to impose tariffs on European countries tied to Greenland has drawn outrage and warnings of a rupture with Washington among European leaders and allies, as the standoff plays out ahead of and during his appearance at the World Economic Forum in Davos, Switzerland.
The European Union’s top official, Ursula von der Leyen, said the planned new tariffs on eight European countries over Greenland are a “mistake” and questioned Trump’s trustworthiness. French President Emmanuel Macron said the EU could retaliate by deploying one of its most powerful economic tools, described as a trade “bazooka.”
European leaders warned that the widening confrontation could fracture NATO, an alliance that they have described as long standing. The dispute also contributed to market jitters, with AP reporting that global investors “shudder[ed]” and that stocks on Wall Street slumped Tuesday as tensions around Greenland and potential deepening trade warfare grew.
The tariffs at the center of the dispute were described as starting in February, with a 10% import tax covering goods from eight European nations that have rallied around Denmark. Greenland, a semiautonomous territory of Denmark, has become the focal point for tensions between Washington and European capitals about territorial control and security.
In a White House briefing room appearance on Tuesday, Trump spoke at length as stocks fell and was asked how far he’d be willing to go to acquire Greenland. Trump replied, “You’ll find out.” He also mistakenly referred to Greenland as Iceland at one point, but later predicted there could be a deal in the making, saying he thinks that “we will work something out where NATO is going to be very happy, and where we’re going to be very happy,” without providing details.
Trump also suggested NATO members should expect the U.S. to come to their rescue while questioning whether they would do the same for Washington’s interests. In the remarks, he said he “just really do question whether or not they’ll come to ours,” and he said he had been encouraged by increased NATO spending.
Von der Leyen, speaking in Davos, tied the tariff announcement to established commitments, saying the European Union and the United States had agreed to a trade deal last July and that “a deal is a deal.” She warned that “plunging us into a downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape,” portraying the tariff escalation as counterproductive against shared rivals.
Greenland and Denmark’s leaders responded by emphasizing international law and territorial integrity. Greenland’s Prime Minister Jens-Frederik Nielsen said in Nuuk that “we need to have respect for international law and territorial integrity,” and called international law “not a game.” He said the principles should unite Western democratic countries, adding that “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.”
Denmark’s Prime Minister Mette Frederiksen told parliament that “the worst may still be ahead of us,” while saying, “We have never sought conflict. We have consistently sought cooperation.” The remarks underscored the political message that European governments may be seeking to resist Trump’s approach rather than accommodate it quickly.
In Davos and on the sidelines, other leaders characterized the dispute as broader than Greenland. Canadian Prime Minister Mark Carney said in Davos that “We are in the midst of a rupture, not a transition,” and warned that it was an “illusion” and “fiction” that there remains a rules-based international order. Belgian Prime Minister Bart De Wever said Europe cannot be a “miserable slave to Trump,” and California Gov. Gavin Newsom, speaking to reporters, called Europe’s response “pathetic” and “embarrassing” and said it was “time to stand tall and firm, have a backbone.”
Diplomatic and military planning also entered the conversation. Swedish Defense Minister Pål Jonson said that Greenland’s European backers have looked at establishing a more permanent military presence to help guarantee security in the Arctic region, an area he described as important to the United States.
Outside the Western alliance, Russian Foreign Minister Sergey Lavrov denied in Moscow any intention by Russia and China to threaten Greenland, and he described Greenland as a “colonial gain” for Denmark. Meanwhile, Trump was asked what would happen if the U.S. Supreme Court rules against his ability to impose import tariffs as part of a case it is considering; he said, “Well, I’ll have to use something else,” and added, “We have other alternatives,” without responding when asked about using force.