Davos showdown over Greenland: Europe confronts Trump, faces its costly US reliance
TEHRAN — Europe and the United States remain locked in a tense political standoff. That tension was on full display at the World Economic Forum in Davos on Tuesday, where European leaders openly criticized President Donald Trump’s push to take control of Greenland and his threats to impose new tariffs on European countries. Their remarks underscored a growing sense of frustration in Europe over Washington’s increasingly confrontational approach.
European leaders have signaled both resolve and frustration. European Commission President Ursula von der Leyen described Trump’s proposed levies on eight EU countries as a “mistake, especially between long-standing allies,” warning that his actions risked plunging transatlantic relations into a “downward spiral.” She pledged that Europe’s response would be “unflinching, united, and proportional,” emphasizing that escalation would only benefit strategic adversaries.
French President Emmanuel Macron went further, denouncing what he described as Trump’s attempt to “subordinate Europe” through coercive trade practices. Speaking at Davos, Macron criticized the “endless accumulation of new tariffs” as fundamentally unacceptable, particularly when used to pressure European nations over matters of sovereignty, including Greenland. He emphasized that respect, the rule of law, and European independence must guide responses to coercion, saying that Europe should confront intimidation with principle rather than fear. A source close to the French president also highlighted that Trump’s recent threats to impose a 200% levy on French wine and champagne—in retaliation for Paris’ refusal to join his proposed “Board of Peace” for Gaza—were “unacceptable.”
Trump’s Greenland ambitions and provocations
Trump has publicly escalated his campaign to acquire Greenland, posting a doctored image on his Truth Social platform showing himself planting a flag next to a sign declaring “GREENLAND – US TERRITORY EST. 2026.” He has argued that the United States must take control of Greenland to protect it from perceived Russian and Chinese threats—a justification analysts call exaggerated and largely symbolic, given Greenland’s limited direct involvement with China.
In addition to these provocations, Trump has threatened tariffs beginning at 10% on February 1, rising to 25% on June 1, targeting exports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland until a Greenland deal is reached. He has also suggested that Norway’s refusal to award him a Nobel Peace Prize may partly explain his stance, sending a personal message to Prime Minister Jonas Gahr Store linking the two.
Critics argue that Trump’s actions undermine NATO cohesion and international norms, exploiting Greenland’s strategic location in the Arctic to pursue unilateral objectives. Greenland, home to roughly 56,000 people and politically part of Denmark, is critical for transatlantic security, hosting U.S. military facilities at Pituffik Space Base and serving as a key point for early-warning systems and Arctic navigation routes.
Europe’s tools and the ‘trade bazooka’
In response, the European Union is considering activating the Anti-Coercion Instrument (ACI), a legal mechanism often referred to as the “trade bazooka.” Adopted in 2023, the ACI is designed to counter economic pressure from non-EU countries through measures such as retaliatory tariffs, customs duties, restrictions on foreign investment, limits on access to public sector contracts, and even constraints on the use of EU financial infrastructure.
Economists note that while the bazooka could strategically target U.S. interests—including major tech, aerospace, and pharmaceutical sectors—it could also raise costs for European consumers and businesses, highlighting Europe’s continued dependence on trade with the United States. Implementation of the ACI requires a qualified majority of at least 15 EU member states representing 65% of the bloc’s population, and the process could take up to a year from complaint to full effect.
Despite these challenges, European leaders are signaling unity. The 27 EU member states convened an emergency session on Sunday, issuing a statement affirming solidarity with Denmark and Greenland and committing to defend sovereignty and territorial integrity. Officials from France, Germany, the Netherlands, and other nations have called for immediate activation of the ACI if diplomacy fails.
A delicate balance
European leaders are attempting to balance firm resistance with pragmatic diplomacy. German Chancellor Friedrich Merz and UK Prime Minister Keir Starmer emphasized dialogue and restraint, cautioning that a full-scale tariff war would harm both sides of the Atlantic. Starmer stressed that Greenland’s future must be determined solely by Denmark and the island’s residents, and that coercive tariffs against allies are unacceptable.
Yet the unfolding feud highlights structural vulnerabilities: Europe remains heavily economically and strategically tied to the United States, limiting its leverage even as it faces pressure from an assertive U.S. president willing to flout conventional diplomacy.
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