Tariff Turbulence: EU Rebukes Trump's Greenland Gambit

The EU criticized President Trump's planned tariffs on Europe over Greenland, calling it a misstep among allies. EU President Ursula von der Leyen reaffirmed trust and cooperation with the US while discussing potential countermeasures. European markets reacted with a decline amid the diplomatic tensions.

In a significant escalation of diplomatic tensions, European Union officials denounced President Trump's proposed tariffs targeted at European countries defending Denmark against US territorial aspirations involving Greenland. EU Commission President Ursula von der Leyen argued that such moves undermine the established transatlantic partnership.

Von der Leyen, addressing global leaders at the World Economic Forum in Davos, highlighted the EU's readiness to respond decisively to protect its economic interests and integrity. Following Trump's social media posts suggesting a G-7 meeting, France reaffirmed its commitment to dialogue, emphasizing sovereignty is non-negotiable.

The financial markets mirrored the geopolitical unrest as European stocks dipped after the US threatened a 10% tariff on imports from dissenting EU nations. As leaders weigh potential retaliatory tactics, the broader implications for US-EU relations hang in the balance, with both sides advocating for a diplomatic resolution.

(With inputs from agencies.)