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Transatlantic tensions over Greenland have ratcheted up between the United States and European nations as President Donald Trump doubles down on his ambitions to acquire the self-governing island, which is part of the Kingdom of Denmark.<\/p>\n
In a social media post following a phone call with NATO Secretary-General Mark Rutte on Tuesday, Trump said there is \u201cno going back\u201d on Washington\u2019s plans. Trump added that he would meet \u201cthe various parties\u201d in Davos, Switzerland, during this week\u2019s annual summit of the World Economic Forum (WEF).<\/p>\n
Last weekend, Trump threatened to increase trade tariffs for European countries which oppose his attempt to acquire Greenland. Since the tariff threats, the European Union has been contemplating its response, with some members calling for the implementation of the bloc\u2019s never-before-used \u201ctrade bazooka\u201d option of retaliatory tariffs and restrictions.<\/p>\n
Given Europe\u2019s decades-long dependence on Washington, which has only deepened in recent years, could the EU take action against the US, and could that risk a serious transatlantic rift?<\/p>\n
Trump made a series of posts on his Truth Social platform on Tuesday, reiterating his ambition to acquire Greenland and stating that he would meet European leaders in Davos to discuss the issue.<\/p>\n
In one post, Trump wrote that he had a \u201cvery good telephone call\u201d with Rutte about Greenland. \u201cI agreed to a meeting of the various parties in Davos, Switzerland. As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back \u2013 On that, everyone agrees!\u201d he added.<\/p>\n
In a separate post, Trump shared a screenshot showing messages, presumably from Rutte, in which he wrote, \u201cI am committed to finding a way forward on Greenland.\u201d<\/p>\n
In another post, he shared screenshots of messages from French President Emmanuel Macron, who wrote, \u201cI do not understand what you are doing in Greenland.\u201d In the messages, Macron also offered to set up a Group of Seven meeting in Paris on Thursday.<\/p>\n
Trump also posted mockup images created using artificial intelligence (AI) tools on Tuesday, showing himself holding the US flag in Greenland with a sign stating \u201cUS territory\u201d. Vice President JD Vance and Secretary of State Marco Rubio are depicted in the image, standing behind him.<\/p>\n
Another image Trump shared shows him in an Oval Office meeting with European leaders. It includes a map on an easel showing the US flag spanning Canada, Greenland and Venezuela.<\/p>\n
The sparsely populated Arctic island of 56,000 people \u2013 mostly Indigenous Inuit \u2013 is geographically in North America but politically part of Denmark, making it part of Europe. Greenland withdrew from the European Community (EC\/EU) in 1985 after it gained home rule, but maintains a special association with the EU as an Overseas Country and Territory (OCT), which grants limited internal market access and EU citizenship to Greenland\u2019s residents through Denmark.<\/p>\n
Trump has long coveted Greenland because of its strategic location and plentiful mineral deposits, including highly sought-after rare-earth metals required for the manufacture of a wide range of technology from smartphones to fighter planes. The island has therefore drawn increasing interest from leading powers as climate change opens up new shipping lanes in the Arctic.<\/p>\n
Currently, Greenland\u2019s economy relies mainly on fishing; locals oppose large-scale mining, and there is no oil or gas extraction.<\/p>\n
The island\u2019s geographical position between the Arctic and North Atlantic oceans provides the shortest air and sea routes between North America and Europe, making it crucial for US military operations and early-warning systems, especially around the Greenland-Iceland-United Kingdom gap, according to the Trump administration.<\/p>\n
On January 17, Trump said, starting February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would be charged a 10 percent tariff on their exports to the US.<\/p>\n
On June 1, the tariff would be increased to 25 percent, he said. \u201cThis Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,\u201d Trump wrote on Truth Social.<\/p>\n
A day after Trump posted this threat to social media, the 27 EU members convened for an emergency meeting.<\/p>\n
In a\u00a0joint statement, the eight countries targeted by Trump with new tariffs said they \u201cstand in full solidarity\u201d with Denmark and the people of Greenland, a semi-autonomous Danish territory.<\/p>\n
\u201cBuilding on the process begun last week, we stand ready to engage in a dialogue based on the principles of sovereignty and territorial integrity that we stand firmly behind,\u201d the statement said.<\/p>\n
\u201cTariff threats undermine transatlantic relations and risk a dangerous downward spiral. We will continue to stand united and coordinated in our response. We are committed to upholding our sovereignty.\u201d<\/p>\n
European leaders are contemplating several responses to Trump\u2019s threat, ranging from diplomacy to retaliatory tariffs to the extreme, last-ditch \u201ctrade bazooka\u201d \u2013 the Anti-Coercion Instrument (ACI) \u2013 which could target specific goods and services the US has a trade surplus in with the EU.<\/p>\n
However, the never-before-used ACI, which was adopted by the EU in 2023 following restrictions placed on Lithuanian exports by China, would likely take months to implement. It requires the agreement of a minimum of 15 EU countries, representing at least 65 percent of the bloc\u2019s population. It also requires a months-long investigation process.<\/p>\n
Europe has a growing dependence on Washington in various sectors.<\/p>\n
In recent years, Europe has become increasingly dependent on the US for military and intelligence support, especially since the start of Russia\u2019s war in Ukraine in February 2022.<\/p>\n
Even before that, the US was providing Ukraine with significant intelligence support, which has not been detailed publicly. However, reports and officials highlight two crucial roles it has played \u2013 first, satellite and signals intelligence help Ukraine anticipate and prepare for Russian attacks, and second, it helps locate enemy troops and bases so Ukrainians can target them with missiles, including long-range systems which can reach inside Russian territory.<\/p>\n
European NATO states received 64 percent of their arms imports from the US between 2020 and 2024, up from 52 percent during 2015-19, according to a report by the Stockholm International Peace Research Institute (SIPRI) published in March 2025.<\/p>\n
The US contributed about 16 percent of NATO\u2019s common budgets, the joint largest contribution, matched only by Germany\u2019s, according to a NATO breakdown published last year.<\/p>\n
\u201cMilitarily, nearly half of Europe\u2019s recent procurement comes from the US, especially in critical backbone capabilities such as combat aircraft, missiles, air defence, software-driven systems and sustainment,\u201d Christine Nissen, chief analyst at the Copenhagen-based Think Tank Europa, told Al Jazeera.<\/p>\n
\u201cThese dependencies are deeply locked in through platforms, upgrades, spare parts, data and interoperability.\u201d<\/p>\n
Europe is also highly dependent on the US for the provision of technology services and economic infrastructure, such as cloud services, semiconductors, digital platforms, satellite services, cybersecurity, energy technologies and parts of the financial system, Nissen said.<\/p>\n
\u201cIn many of these domains, Europe relies on US firms, standards and regulatory reach, which amplifies Washington\u2019s leverage in a confrontation.\u201d<\/p>\n
Investors in European countries hold more than $10 trillion of US Treasury bonds.<\/p>\n
Bonds are investments through which investors lend money to a government or a company for a set time in exchange for regular interest payments and the original capital back at maturity to whoever is holding the bond at the time. Bonds can be bought and sold on financial markets, so the issuer of the bond may ultimately pay back a different investor from the one who first bought it.<\/p>\n
Bonds usually offer lower returns than stock market shares but are seen as low-risk, especially government bonds.<\/p>\n
US Treasury bonds are particularly popular as they are viewed as \u201csafe-haven\u201d assets. If US-Europe relations turn hostile, however, that safe haven would become highly politicised as there could be a perceived danger that the US might not repay the initial capital brought to buy the bonds.<\/p>\n
Furthermore, if there is a rift in transatlantic relations, investors could panic and start selling off US Treasury bonds en masse. When lots of people sell at the same time, the price of bonds drops. This would mean that the value of the bonds EU members own would decline, and they would lose money on their huge pile of US bonds.<\/p>\n
While this would be bad for the US economically, it would also mean that European holders of the bonds would no longer be able to fully rely on this stash of \u201csafe\u201d assets and might have difficulty finding other places big and stable enough to move that money to.<\/p>\n