US President Donald Trump has threatened to launch a large-scale tariff war against Europe, aiming to force concessions and secure control over Greenland. This move has prompted warnings from numerous close American allies, who suggest it could rupture US-Europe relations and potentially dismantle the once seemingly unbreakable NATO alliance.
Top European Union officials stated on Tuesday that Trump's plan to impose new tariffs over the Greenland issue is a "misguided decision" and questioned Trump's credibility. French President Emmanuel Macron indicated that the EU might deploy one of its most powerful economic instruments—the anti-coercion tool, colloquially known as the trade "rocket launcher"—to retaliate against the long-time ally.
Trump has always prided himself on applying strong pressure and negotiating from a position of strength. January 20th marks the anniversary of his inauguration, and he is scheduled to travel to Davos, Switzerland, for the World Economic Forum on that day. This occasion provides him an opportunity to defuse tensions as swiftly as he ignited them.
However, European leaders are standing firm, vowing to defend Denmark and its semi-autonomous control over Greenland. Facing this critical moment, they are likely demonstrating an equally resolute stance in defending their own interests.
Europe's hardened position may reduce the likelihood of Trump quickly resolving this crisis. Despite Trump's escalating demands for control over Greenland, which threaten to overshadow the elite annual gathering in Switzerland, Greenland's leaders insist on respect for their territorial integrity, stating that international law is "not a game."
Trump announced that starting in February, he would impose a 10% import tariff on goods from eight European countries that have expressed solidarity with NATO ally Denmark. European Commission President Ursula von der Leyen countered this move in Davos. Greenland is a semi-autonomous territory of Denmark.
Von der Leyen stated, "The EU and the US reached a trade agreement last July. In politics, as in business—an agreement is a commitment. A handshake deal between allies must have tangible effect."
She added, "We see the American people not only as allies but as friends. Dragging each other into a downward spiral of deteriorating relations would only benefit rivals that both our nations are committed to excluding from the strategic landscape."
Von der Leyen vowed that the EU's response "will be firm, united, and proportionate."
This strong rhetoric appears to diverge from the strategy adopted by most European leaders following Trump's return to office. Previously, they largely sought to appease Trump and curry favor while pursuing compromise through other channels. However, in recent weeks, Trump has persistently insisted that the US must gain control of Greenland, testing the limits of Europe's previously conciliatory approach.
Trump claims the US needs control of the territory to deter potential threats. Scheduled to speak in Davos on Wednesday, Trump stated on social media that he has agreed to hold a meeting there with "relevant parties." Meanwhile, US Treasury Secretary Scott Bessent insisted that US-Europe relations have "never been closer" and called for trading partners to "remain calm."
Nonetheless, Danish Prime Minister Mette Frederiksen, addressing the Danish parliament, warned that "the worst may be yet to come." She stated, "We have never sought conflict and remain committed to cooperation."
"Not a Game" Greenland Premier Jens-Frederik Nielsen, at a press conference in the capital Nuuk, stated, "We need respect for international law and the principle of territorial integrity." He noted these principles should be common ground for Western democracies and expressed gratitude for the support from EU allies.
He emphasized, "International law is not a game. For years, we have been a loyal and reliable ally to the US and NATO. Within the existing framework, we can cooperate more and are willing to deepen cooperation further, but all this must be based on mutual respect. Without mutual respect, it is difficult to establish a good and reliable partnership."
Trump's threats have caused an uproar in Europe, prompting leaders to engage in intensive diplomacy to develop countermeasures, including retaliatory tariffs and the potential first-ever activation of the EU's anti-coercion instrument.
The EU's anti-coercion tool, nicknamed the "trade rocket launcher," can impose sanctions on individuals or entities deemed to be exerting undue pressure on the EU. Additionally, the EU could leverage two other significant economic tools to pressure the US: imposing new tariffs and suspending the implementation of the US-EU trade agreement.
Macron warned in Davos that the US's new tariffs might force the EU to use the anti-coercion mechanism against the US for the first time.
On Tuesday, January 20, 2026, at the World Economic Forum annual meeting in Davos, Switzerland, French President Emmanuel Macron attended the session.
"Can you imagine?" he said, noting that allies should be focused on achieving peace in Ukraine. "The current situation is utterly absurd."
Macron pointed out that, overall, this mechanism "is a powerful tool, and under the current serious circumstances, we should not hesitate to use it."
Trump previously posted on social media a text message from Macron, in which the French President proposed a meeting of G7 member states in Paris after the Davos forum. An official close to Macron, speaking anonymously per French presidential palace custom, confirmed the authenticity of the text message shared by Trump.
In his latest tariff threat, Trump claimed the tariffs were retaliation for some European countries sending symbolic troops to Greenland last week, though he also stated it was a bargaining chip for negotiations with Denmark.
Newsom Urges Europe to Show "Backbone" California Governor Gavin Newsom, in an interview on the sidelines of the Davos forum, criticized Europe's response to Trump's tariff threats as "weak and pathetic," urging European leaders to unite and resist the US firmly.
Newsom told reporters, "It's time to get serious and stop appeasing. Europe should stand tall, be firm, and show some backbone."
Swedish Defense Minister Pål Jonsson revealed that, addressing a core US demand, European countries supporting Greenland are also considering establishing a more permanent military presence in the Arctic region to ensure its security.
Meanwhile, Russian Foreign Minister Sergey Lavrov in Moscow sternly denied that Russia intends to threaten Greenland, calling the island a Danish "colonial trophy." At a press conference, he stated, "In principle, Greenland is not inherently Danish territory."
US-UK Dispute Over Chagos Archipelago Flares Up Again In another sign of tension among allies, the UK government on Tuesday defended its decision to return sovereignty of the Chagos Archipelago to Mauritius. This came after Trump criticized the plan, despite his administration's previous support for it.
Trump called abandoning the remote Indian Ocean archipelago, which hosts a strategically significant US naval and bomber base, a "stupid move." He cited this event as precisely why the US must control Greenland.
US House Speaker Mike Johnson, speaking in the UK Parliament on Tuesday, expressed hope to "calm the waters," despite the turmoil in transatlantic relations caused by Trump's pursuit of Greenland control.
Johnson stated that the US and UK have "always been able to resolve differences calmly as allies. And we will continue to do so."
