Europe And US Clash Over Greenland Tariff Threats

Tempers are flaring across the Atlantic as Europe and the United States descend into their most dramatic standoff in decades, with Greenland—yes, Greenland—at the heart of the storm. The diplomatic crisis reached a fever pitch this week after US President Donald Trump doubled down on his bid to acquire the mineral-rich, semi-autonomous territory from Denmark, threatening to slap a 10% tariff on eight European countries if the sale did not proceed. The move, described by many European leaders as both surreal and provocative, has sent shockwaves through diplomatic circles and financial markets alike.

On Tuesday, January 20, 2026, European leaders rallied in a rare display of unity, vowing to respond forcefully if Trump follows through on his tariff threats. According to Euronews, Denmark’s Prime Minister Mette Frederiksen stood firm before her parliament, declaring, “We can negotiate anything. Political security, investment and the economy. But we cannot negotiate our very fundamental values, sovereignty, the identity of our countries and our borders. Our democracy.” She made it abundantly clear that Danish sovereignty over Greenland was not up for discussion, reiterating, “We have always stood guard by the transatlantic alliance. We have never sought any conflict, and we have consistently wanted cooperation, and we have been a faithful and close ally for many years.”

Frederiksen’s remarks were echoed by European Commission President Ursula von der Leyen, who, speaking at the World Economic Forum in Davos, Switzerland, promised an “unflinching, united and proportional” EU response if the US imposes the threatened tariffs starting February 1. Von der Leyen warned, “Plunging us into a dangerous downward spiral would only aid the very adversaries we are both so committed to keeping out of our strategic landscape.” The Commission has already prepared a €93 billion list of retaliatory measures and stands ready to deploy the Anti-Coercion Instrument if necessary.

The French President, Emmanuel Macron, also took the stage in Davos, urging the bloc to wield its so-called "trade bazooka" against both US and Chinese pressures. “This is crazy. I do regret that, but this is a consequence of just unpredictability and useless aggressivity,” Macron lamented, adding, “We have to remain very calm.” He described the “endless accumulation of new tariffs” as “fundamentally unacceptable. Even more so when they are used as leverage against territorial sovereignty.”

In a move that seemed to mock his European counterparts, Trump posted a digitally altered image of himself placing an American flag on Greenland, labeling it “US Territory Est. 2026.” According to Euronews, the US President has been unyielding, stating that total US control over Greenland is “imperative for National and World Security.” Trump’s Secretary of the Treasury, Scott Bessent, urged Europeans to “sit back, take a deep breath, do not retaliate, do not retaliate,” while Commerce Secretary Howard Lutnick warned that any EU response would trigger a “tit-for-tat” escalation.

Meanwhile, European Parliament President Roberta Metsola has been in regular contact with US House Speaker Mike Johnson to coordinate responses to the crisis. As reported by Euronews, Metsola emphasized the importance of dialogue, stating, “We should explain our position, be self-confident, listen and also be honest. And that's what I will always engage in.”

But not everyone in Europe is on the same page. Hungary’s Foreign Minister Péter Szijjártó declared the Greenland dispute a “bilateral matter,” opposing an EU-wide response and suggesting it should be handled within NATO. Nevertheless, the overwhelming majority of EU member states have rallied behind Denmark, with only Hungary abstaining from voicing support during an emergency meeting of ambassadors.

The drama over Greenland comes as the EU grapples with broader questions about its place in the world and its relationship with the United States. In a pointed critique, Slovak Prime Minister Robert Fico told TASR after his conversation with German Chancellor Friedrich Merz, “World leaders do not take the EU completely seriously, which can be attributed to nonsensical climate goals and suicidal migration policy.” Fico contrasted Trump’s unapologetic pursuit of US interests with what he sees as the EU’s more hesitant approach, arguing, “If the EU acted in this way, we would be in a completely different place than we are now.”

The crisis has also exposed economic vulnerabilities. As reported by Euronews, European stock markets plunged for a second day, with major French beverage firms like LVMH and Rémy Cointreau seeing their shares tumble after Trump threatened a 200% tariff on French wine and champagne in retaliation for Paris’s skepticism over the US’s so-called Gaza Board of Peace. This “Board of Peace,” another Trump initiative, has become entangled in the Greenland dispute, further muddying the waters and raising concerns about the US supplanting the United Nations as the world’s principal peace broker.

Belgian Foreign Minister Maxime Prévot didn’t mince words, telling Euronews that Trump’s plans for Greenland were “incomprehensible and unnecessarily hostile.” He added, “I hope that it will be possible in the coming days and weeks to go back to a more reasonable way of thinking and acting... Otherwise, we would be forced to use the anti-coercion instrument, for instance.”

Adding to the tension, protests erupted outside the European Parliament in Strasbourg as farmers and lawmakers voiced their anger over the EU-Mercosur trade deal and the wider sense of European vulnerability. “This is unacceptable,” said Belgian MEP Estelle Ceulemans, as police used teargas to disperse demonstrators.

Calls for European autonomy have grown louder. Von der Leyen declared in Davos, “It is time to seize this opportunity and build a new independent Europe.” Macron, for his part, insisted that Europe must “fix its key issues” and protect its industries from unfair competition, warning that “Europeans are the only ones not to protect their own companies and their own markets when the other countries don't respect the level playing field.”

Yet, even as Europe faces pressure from Washington, Beijing’s Vice-Premier He Lifeng weighed in at Davos, warning that “tariff and trade wars have no winners” and cautioning against a return to “the law of the jungle in which the strong bully the weak.”

With an extraordinary EU summit scheduled for Thursday, leaders are preparing to discuss not only the Greenland crisis but also whether to join Trump’s controversial Board of Peace. The outcome could redefine transatlantic relations for years to come. As Belgian Prime Minister Bart De Wever put it, “Eighty years of Atlanticism are truly drawing to a close.” The old world is dying, and a new one—rife with uncertainty and ‘monsters’—struggles to be born.

As the world watches, the fate of Greenland has become a symbol of Europe’s struggle for sovereignty, unity, and relevance in a rapidly shifting global order. The next moves on both sides of the Atlantic may well determine not just who owns a remote Arctic island, but who shapes the rules of tomorrow’s world.