Trump's Greenland Gambit: A Trade War with Europe Emerges

President Trump's tariff threats over Greenland control have strained US-Europe relations, risking a NATO rift. EU leaders, including President Macron, contemplate a formidable economic response. Amid tensions, Greenland defends its sovereignty as Trump aims to leverage US influence.


Devdiscourse News Desk | Davos | Updated: 20-01-2026 23:36 IST | Created: 20-01-2026 23:36 IST
Trump's Greenland Gambit: A Trade War with Europe Emerges
Donald Trump
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President Donald Trump's plan to impose new tariffs as leverage for controlling Greenland has triggered warnings from American allies, marking a potential breach in the NATO alliance. European Union's top official labeled the move a 'mistake' and criticized Trump's reliability.

Amid escalating tensions, French President Emmanuel Macron hinted at EU retaliation using its 'trade bazooka' to counter Trump's aggressive negotiation tactics. Trump's scheduled appearance at the World Economic Forum in Davos offers a platform to ease tensions, though European leaders remain firm in protecting Denmark's autonomy over Greenland.

Greenland's leadership affirmed their territorial integrity, rejecting gamesmanship over sovereignty. The European Commission vowed a united and proportional response, urging that political agreements should be honored as in business. Despite reassurances from the US Treasury about strong alliances, Danish Prime Minister Mette Frederiksen signaled that more challenges may follow.

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