BRUSSELS/WASHINGTON — Relations between the United States and its European allies have entered one of their most serious crises in years after President Donald Trump threatened sweeping tariffs over his bid to gain control of Greenland, an autonomous territory of Denmark. The dispute has rapidly shifted from diplomatic disagreement to a potential trade war that could reshape transatlantic ties and global markets.
Trump announced that the United States would impose a 10 percent tariff on imports from eight European countries beginning Feb. 1, rising to 25 percent by June, unless Denmark agrees to open negotiations on transferring Greenland to Washington. European governments have firmly rejected the demand, saying sovereignty over Greenland belongs to Denmark and its people, not to foreign powers.
European Union officials convened emergency meetings in Brussels to coordinate a response, warning that Trump’s threats represent economic coercion against long-standing allies. Diplomats said the bloc is preparing possible counter-tariffs under its Anti-Coercion Instrument if Washington proceeds with its plan. Several member states, including Germany and France, said Europe would not be “blackmailed” into surrendering territorial principles.
Despite the escalating rhetoric, U.S. Treasury Secretary Scott Bessent sought to downplay fears of a full-scale trade war while speaking at the World Economic Forum in Davos. He insisted that U.S.–Europe relations remain fundamentally strong and urged European leaders not to retaliate. His comments, however, have done little to calm tensions, as Trump continues to link the tariff threat directly to Greenland.
The standoff has already unsettled financial markets, with European stocks falling and gold prices rising as investors seek safer assets. Analysts warn that prolonged trade conflict could significantly slow European economic growth in the coming years and deepen geopolitical divisions within NATO.
Danish officials, meanwhile, have reinforced their military presence in Greenland, citing both regional security concerns and the need to signal firm control over the Arctic territory. European leaders have stressed that any future status of Greenland must be decided by its own population, not imposed by external pressure.
As talks continue in Brussels and Davos, diplomats say the coming weeks will determine whether the dispute escalates into a damaging trade war or is resolved through negotiation. For now, the confrontation stands as one of the most dramatic ruptures in transatlantic relations in decades.
Originally published by: Reuters, ABC News, Euro news and The Washington Post
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