US President Donald Trump has unequivocally stated there will be "no turning back" on his objective to control Greenland, even refusing to rule out the use of military force, risking the collapse of a decades-old Western security alliance.
President Trump vowed this past Tuesday that he would not retreat from his goal of controlling Greenland, dismissing any possibility of ruling out a forcible seizure of the Arctic island while launching fierce criticisms against allies, as European leaders struggle to manage the escalating situation.
Through social media posts and AI-generated imagery, Trump articulated his ambition to seize sovereignty over Greenland from NATO ally Denmark. This move now threatens the alliance that has served as a cornerstone of Western security for decades and is re-igniting a trade war.
This trade war had previously unsettled markets and businesses for months last year, despite rebuttals from Trump's Treasury Secretary, Bessent, regarding what he termed the "hysterical" reaction to the Greenland issue.
Following a call with NATO Secretary-General Rutte, Trump stated, "As I have made very clear to everyone, Greenland is critical to national and global security. There is absolutely no possibility of turning back; on this point, everyone is in agreement!"
To emphasize this message, Trump released an AI-generated image depicting himself holding an American flag on Greenland. Another image showed him conversing with world leaders beside a map where Canada and Greenland were marked as part of the United States.
Furthermore, he leaked communications that included French President Macron, who questioned what Trump was "doing in Greenland." Earlier, Trump had threatened to impose a crushing 200% tariff on French wine and champagne.
Bessent rebutted the "hysteria" claims.
The EU has threatened to retaliate with trade measures. One option is to impose a blanket tariff on €93 billion ($109 billion) worth of US imports, which could automatically take effect on February 6th after a six-month suspension.
Another option is the yet-to-be-deployed "Anti-Coercion Instrument" (ACI). This instrument could restrict access to public procurement, investment, or banking activities, or limit trade in services—a sector, including lucrative digital services provided by US tech giants, where the US holds a surplus with the EU.
"This is not just an issue for the Kingdom of Denmark, but concerns the entire transatlantic relationship," Danish Economy Minister Stephanie Lose told reporters before a meeting of EU Economic and Finance Ministers in Brussels.
"At this point, we must believe that nothing should be ruled out. This is a serious situation, and although we hope to de-escalate, others are currently intensifying it, so we must keep all options on the table as we move forward."
Speaking on the sidelines of the annual World Economic Forum meeting in Davos, Switzerland, Bessent said a solution ensuring the security of both the US and European nations would be found.
"It's only been 48 hours. As I said, sit down, relax," he stated. "I am confident that leaders will not escalate the situation, and matters will ultimately be resolved in a manner very favorable to all parties."
When questioned about the prospect of a prolonged trade war between the US and Europe, Bessent replied, "Why would we jump to that? Why assume the worst?... Let's calm this hysteria. Take a deep breath."
However, in her speech at Davos, European Commission President von der Leyen indicated that the recent series of geopolitical shocks would compel the EU to build a new, independent Europe.
"Only when we recognize that this change is permanent can we seize this opportunity," she said.
Russia questions Danish sovereignty over Greenland.
Trump is also scheduled to attend the Davos forum this week, which gathers global political and business elites. The Swiss newspaper Neue Zürcher Zeitung (NZZ) reported that protesters marched in Zurich, Switzerland, late Monday, carrying large banners that read: "Trump not welcome. No to the WEF! No to oligarchy! No to imperialist war!"
Russia has been observing how Trump's moves to acquire Greenland are widening the rift with Europe. The Russian Foreign Minister stated on Tuesday that Greenland is not a "natural component" of Denmark.
Trump's renewed tariff threats against European allies have revived discussions about "selling America" deals that emerged after comprehensive tariffs were imposed last April.
On Monday, stock markets bore the initial brunt of fears over a potential re-escalation of the trade war, with European equities falling over 1% and US stock index futures suffering similar declines. The US dollar was also on the defensive.
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