Trump Doubles Down on Greenland—and Shakes the West
U.S. President Donald Trump has thrown a geopolitical grenade into the heart of the transatlantic alliance, declaring there is “no going back” on his ambition to control Greenland—even refusing to rule out the use of force.
What began as provocative social media posts has escalated into a full-blown diplomatic crisis, unsettling NATO allies, rattling financial markets, and reopening wounds from last year’s bruising U.S.–Europe trade tensions.
“Imperative for National and World Security”
After speaking with NATO Secretary General Mark Rutte, Trump framed Greenland not as a territorial obsession but as a strategic necessity.
“Greenland is imperative for National and World Security. There can be no going back,” Trump said, insisting that global leaders privately agree with his position.
To underline the point, Trump shared AI-generated images of himself standing in Greenland clutching a U.S. flag, alongside mock-up maps depicting Canada and Greenland as part of the United States. The imagery alone was enough to alarm European capitals.
NATO Allies Caught Off Guard
Trump’s push to wrest sovereignty over Greenland from Denmark, a fellow NATO member, threatens to fracture the alliance that has underpinned Western security for decades.
“This is not just about Denmark,” said Danish Economy Minister Stephanie Lose. “It’s about the entire transatlantic relationship.”
European leaders, scrambling to respond, warned that no options should be ruled out, even as they expressed a desire to de-escalate the crisis.
Trade War Ghosts Return to Haunt Markets
The geopolitical drama has revived fears of a renewed U.S.–EU trade war, a prospect that already sent shockwaves through markets.
European equities fell more than 1%, U.S. stock futures dipped, and the dollar weakened, signaling growing unease over Trump’s threats to raise tariffs on allies.
Trump has already warned of 200% tariffs on French wines and champagne, and the European Union is preparing its own countermeasures.
On the table:
€93 billion ($109 billion) in tariffs on U.S. imports, potentially activating on February 6
The EU’s never-used Anti-Coercion Instrument, which could restrict U.S. access to public contracts, investments, banking, or digital services
Given that the U.S. runs a surplus with Europe in services—especially tech—this could hit American giants where it hurts.
Washington Says “Calm Down”
U.S. Treasury Secretary Scott Bessent, speaking at the World Economic Forum in Davos, urged restraint and dismissed market panic.
“Calm down the hysteria. Take a deep breath,” Bessent said, insisting that leaders would find a solution that protects security interests on both sides of the Atlantic.
“It’s been 48 hours,” he added. “Sit back, relax.”
But Europe appears unconvinced.
Europe Signals a Strategic Pivot
In her Davos address, European Commission President Ursula von der Leyen struck a sober tone, suggesting the crisis could accelerate Europe’s push for greater independence.
“These geopolitical shocks show us that this change is permanent,” she said, calling for a stronger, more autonomous Europe.
Behind the scenes, officials are quietly preparing for a scenario in which U.S.–EU relations grow colder—and more transactional.
Russia Watches With Interest
Adding fuel to the fire, Russia’s foreign minister questioned whether Greenland was even a “natural part” of Denmark—a comment widely seen as an attempt to exploit divisions within NATO.
Meanwhile, protests erupted in Zurich, with demonstrators unfurling banners reading: “TRUMP NOT WELCOME. NO WEF! NO OLIGARCHY! NO IMPERIALIST WARS!”
The Bigger Picture
Trump’s Greenland gambit is no longer just political theater. It has become a stress test for NATO, a trigger for market volatility, and a potential catalyst for a new trade war.
Whether this ends in negotiation or escalation remains unclear. What is clear is that Trump has once again forced allies—and investors—to confront an uncomfortable reality: the rules of global engagement may be changing, fast.