Trump Greenland strategy drives new transatlantic strain
The Trump Greenland strategy intensified this week after U.S. President Donald Trump said there was no going back on his goal to control Greenland, raising fresh questions about NATO unity and European security.
Speaking after contact with NATO Secretary General Mark Rutte, Trump framed Greenland as essential to national and global security. His remarks followed social media posts that included artificial intelligence generated images portraying Greenland as part of the United States, amplifying diplomatic backlash across Europe.
Growing pressure on NATO allies
The Trump Greenland strategy has put Denmark and other NATO allies in a difficult position. Denmark maintains sovereignty over Greenland, an autonomous territory critical to Arctic surveillance and North Atlantic defense. European officials warned that public pressure and implied threats risk undermining alliance cohesion at a time of heightened global competition.
At the World Economic Forum in Davos, French President Emmanuel Macron urged Europe to resist coercion and prioritize respect in international relations. European Commission President Ursula von der Leyen described the moment as a seismic shift, calling for greater European strategic independence.
Trade tools and economic risks
Alongside security concerns, the Trump Greenland strategy has revived fears of a wider U.S. EU trade dispute. European officials confirmed that retaliatory tariffs on U.S. imports could resume in early February. Another option under discussion is the EU Anti Coercion Instrument, which allows restrictions on services, investment, and market access.
U.S. Treasury Secretary Scott Bessent sought to calm markets, saying talks would deliver outcomes that protect U.S. and European security interests.
Russia weighs in as markets react
Russia’s foreign minister questioned Denmark’s historical claim to Greenland while denying any Russian ambitions on the island. Markets reacted sharply to the renewed tensions, with global equities sliding and gold reaching record highs amid risk aversion.
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