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TWN Info Service on WTO and Trade Issues (Jan26/05)
22 January 2026
Third World Network


Trade: Trump’s Greenland annexation threat triggers trade war alarms
Published in SUNS #10366 dated 22 January 2026

Geneva, 21 Jan (D. Ravi Kanth) — The United States and members of the European Union on 20 January appeared to be teetering on the brink of a trade war, as President Donald Trump intensified pressure on his European counterparts, reaffirming Washington’s determination to pursue its plan to annex Greenland, a semi-autonomous territory of Denmark.

In a seemingly coordinated response, several European leaders took to the stage at the ongoing annual World Economic Forum (WEF) summit in Davos, Switzerland, to denounce President Trump’s ambitions as akin to “new colonialism.”

The escalating war of nerves may yet bring both sides to the negotiating table, with the Davos summit emerging as a potential high ground for dialogue, according to statements from US and EU officials.

US Treasury Secretary Scott Bessent urged European countries not to retaliate against the tariffs proposed by President Trump in response to opposition to his plan to take over Greenland.

A visibly frustrated French President Emmanuel Macron delivered the strongest rebuke of his US counterpart, cautioning that Europe must be prepared to confront this “grave challenge” and safeguard Greenland’s sovereignty and territorial integrity “at any cost,” according to remarks made at the WEF summit on 20 January.

Facing continued threats and taunts from the US President – who has repeatedly claimed that Denmark lacks the legal right to assert ownership over Greenland – President Macron insisted: “We prefer respect to bullies, we prefer science to conspiracies, and we prefer the rule of law to brutality,” according to media reports.

President Macron declared that “now was not a time for new imperialism or new colonialism,” criticizing what he called the “useless aggressivity” of President Trump’s pledge to impose tariffs on nations opposing a US takeover of Greenland.

He likened America’s bellicose stance on Greenland’s annexation to an effort to “weaken and subordinate Europe” by demanding “maximum concessions” and imposing tariffs that were “fundamentally unacceptable – even more so when they are used as leverage against territorial sovereignty,” according to a report in The Guardian.

As reported in the SUNS, President Trump made it unequivocally clear that Washington would take control of the Arctic island “one way or the other”, adding: “No, it is time, and it will be done.”

European Commission President Ursula von der Leyen – who had previously concluded a reciprocal framework agreement with the US in Turnberry, Scotland – called President Trump’s threat to impose a 10% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, The Netherlands, and Finland a “mistake.”

In a cautious statement issued at the Davos meeting, she warned of the dangers of “a downward spiral” in transatlantic trade relations if the US proceeds with its proposed tariffs.

Von der Leyen said that EU members could adopt an “unflinching, united and proportional” response should the US press ahead with its plan.

According to a report in The Guardian, Belgian Prime Minister Bart De Wever said Europe was “at a crossroads” and lamented that “so many red lines are being crossed” by President Trump.

He argued that the continent must stand up for itself or “lose its dignity … the most precious thing you can have in a democracy.”

De Wever said he would “like to confirm that [the US] is an ally, but they have to behave like an ally.”

He expressed dismay that “a NATO country is threatening another NATO country with military invasion.”

“This is not a question about the Kingdom of Denmark,” said Denmark’s Economy Minister Stephanie Lose in Brussels. “It is about the entire transatlantic relationship. At this point in time, we do not believe that anything should be ruled out.”

However, US Treasury Secretary Bessent, speaking on the sidelines of the Davos summit, sought to downplay tensions, asserting that US-Europe relations remained strong.

He urged partners to “take a deep breath” and let the situation over Greenland “play out.”

Bessent expressed confidence that a solution would be found and dismissed European concerns as “hysteria,” saying: “It’s been 48 hours. Sit back, relax. I am confident the leaders will not escalate and that this will work out in a manner that ends up in a very good place for all.”

Greenland’s Prime Minister Jens-Frederik Nielsen, speaking from the capital Nuuk, acknowledged that while the use of military force was “unlikely,” it “could be.”

He warned: “Greenland is part of NATO, and if there is an escalation, it will have consequences for the outside world.”

Nielsen added that if his people were asked today, they would choose to remain a Danish territory rather than join the US.

“Notwithstanding immense pressure,” he said, “the island would remain a part of the Kingdom of Denmark.”

Danish Prime Minister Mette Frederiksen, in addressing the Danish parliament, said that “the worst may still be ahead of us,” emphasizing that her country had “never sought conflict. We have consistently sought cooperation.”

President Trump has repeatedly argued that the US must take control of Greenland for “national security” reasons – despite already operating a military base on the island and holding a bilateral agreement with Denmark that permits a significant expansion of the US presence there.

In her Davos speech, Von der Leyen outlined that the EU was developing a comprehensive package for Arctic security, grounded in respect for Greenlandic and Danish sovereignty, featuring a major investment surge in Greenland, and including cooperation with the US in the region. +

 


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