EU casts doubt on Trump after Greenland tariff threat

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Davos, Jan 20: The European Union’s top official, European Commission President Ursula von der Leyen, called US President Donald Trump’s proposed tariffs on Greenland imports “a mistake, especially between long-standing allies” and questioned his trustworthiness.
Trump had announced a 10% import tax starting February on goods from eight European nations backing Denmark after his repeated calls for the US to take over Greenland.
Von der Leyen stressed that the EU and US agreed to a trade deal last July, noting that “a deal is a deal,” and warned that escalation would aid shared adversaries. She pledged that the EU’s response would be “unflinching, united, and proportional.”

Diplomatic tensions and international responses

Trump’s threats sparked widespread diplomatic activity across Europe. Leaders discussed countermeasures including retaliatory tariffs and the EU’s Anti-Coercion Instrument, also called the “trade bazooka.”
France’s President Emmanuel Macron proposed a G7 meeting in Paris to encourage dialogue and uphold state sovereignty, with officials emphasizing that Greenland’s territorial integrity is non-negotiable.
Thousands of Greenlanders protested Trump’s efforts to take over the island, while Greenland’s Prime Minister Jens-Frederik Nielsen affirmed that tariffs would not alter their stance.

Denmark and European security concerns

Denmark’s Minister for European Affairs, Marie Bjerre, called the tariff threat “deeply unfair” and stressed Europe’s need for greater independence, while avoiding a trade war.
European leaders, including Sweden’s Defense Minister Pal Jonson, signaled a potential more permanent military presence in the High North to ensure Arctic security.
Jonson confirmed NATO reconnaissance tours are underway to assess infrastructure and training needs in the region.

Market and political repercussions

Tensions affected financial markets, with European indices falling about 1% and US futures down 1.4–1.5%.
Analysts described the situation as “lose-lose” for both the US and the targeted European nations.
Meanwhile, Trump also criticized the UK over the Chagos Islands handover to Mauritius, a decision previously supported by the US.
British and US officials, including House Speaker Mike Johnson, sought to calm tensions, emphasizing that long-standing alliances can withstand disagreements.

Public messaging and social media

Trump posted doctored images showing Greenland and parts of Canada under US control, further fueling tensions.
US Treasury Secretary Scott Bessent urged Europe to “take a deep breath,” claiming US relations with allies remain strong, despite the escalating rhetoric. (AP)

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