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US pressures Denmark to cede Greenland, threatening European economies
President Donald Trump reiterated his demand for the US to acquire Greenland on Monday, warning European leaders not to "push back too much" during this week's World Economic Forum in Davos. The semi-autonomous Danish territory has become a flashpoint in transatlantic relations, with Trump leveraging trade threats to force Denmark's allies to abandon Copenhagen.
Europe vows resistance as Trump wields tariffs as geopolitical weapon
German Finance Minister Lars Klingbeil declared Europe would "not allow itself to be blackmailed" after an emergency meeting with his French counterpart. Trump's threats to impose punitive tariffs on European exports-targeting Germany's auto industry and Italy's luxury goods-have sent shockwaves through economies already struggling with stagnation.
France's Finance Minister Roland Lescure called the move unprecedented: "An ally of 250 years is considering using tariffs as a geopolitical weapon. We've never seen this before."
"A line has been crossed... Europe must be prepared."
Lars Klingbeil, German Finance Minister
EU prepares €93 billion retaliatory tariffs, market restrictions
European diplomats confirmed plans to impose €93 billion (£80 billion) in counter-tariffs on US goods and restrict American businesses-including banks and tech firms-from the EU's single market if Trump proceeds with his "Greenland tariffs." The measures could raise costs for US consumers, given European investors employ 3.4 million Americans across all 50 states.
EU Commission deputy spokesperson Olof Gill emphasized de-escalation: "Our priority is to engage, not escalate." Yet economists warn the standoff transcends economics. "The EU cannot afford not to react," said Niclas Poitiers of Brussels-based think tank Bruegel. "The bigger question is security and foreign policy."
Nato allies caught between security dependence and sovereignty
Trump's demand puts Europe in a bind. While UK Prime Minister Keir Starmer reaffirmed the need for US cooperation on defense and intelligence, he stressed that "our nuclear deterrence is our foremost weapon." Estonia's former PM Kaja Kallas, now the EU's top diplomat, tweeted: "We have no interest in picking a fight, but we will hold our ground."
Analysts note the crisis exposes Europe's reliance on Washington for Ukraine peace talks and continental security. Tara Varma of the German Marshall Fund questioned US reliability: "If Trump links economic and security issues, threatening Nato over Greenland, how much trust can Europe place in US guarantees?"
Global powers watch as transatlantic unity frays
Russia and China are closely monitoring the rift. Beijing may exploit the instability, with Canada-previously threatened with US annexation-recently signing a trade deal with China to reduce dependence on Washington. Trump's disregard for multilateral institutions like Nato and the UN further erodes Western cohesion.
His proposed "Board of Peace," ostensibly for Gaza reconstruction, is viewed skeptically. France refused to join, citing concerns over UN principles, while the Kremlin confirmed Putin was invited. Varma dismissed the board as a "hit-and-run strategy" lacking diplomatic groundwork.
Greenland's fate hangs on European unity
Polls show 55% of Americans oppose purchasing Greenland, and 86% reject military takeover. Denmark and European allies are lobbying US lawmakers to uphold Greenlandic sovereignty. Yet Europe's leaders face domestic pressures-a trade war would harm voters, complicating unified resistance.
As WEF begins Wednesday, Europe plans to adopt Teddy Roosevelt's "speak softly, carry a big stick" approach. But with Trump's maximalist stance unchanged, the summit may mark a turning point. "Europeans can't shy away anymore," Varma said. "They tried personal diplomacy. Now they must act."
