Donald Trump's obsession with Greenland is gaining momentum. Davos may become a flashpoint. “Moment of Truth”
The move comes as the EU considers retaliatory tariffs, sanctions and even a “nuclear option” in response to what leaders see as Trump's forcible attempt to annex Danish territory.
— This is the most serious transatlantic split we have seen since the Iraq War – emphasizes one of the high-ranking Western officials in an interview with the Kyiv Post. – And all this is happening around an island that most Europeans considered untouchable – he adds.
Diplomats agree: Trump's gamble for Greenland is no longer just a sideshow — it is a test of endurance for the Western alliance itself.
Trump, who has publicly ruled out leasing Greenland, is privately more flexible than his public posture suggests.
Sources say that could be open to a lease lasting almost a hundred years — 99 years, to be precise — a solution intended to assuage European outrage while ensuring de facto U.S. control over the resource-rich Arctic island.
Another option being considered is to offer residents of Greenland rights similar to those of residents of Puerto Rico.
Within it, the inhabitants of Greenland they would become US citizens with full bilateral market access and trade privileges. They would be exempt from U.S. income tax unless they moved to the mainland – an idea that advisers say could be sold as a welfare package for about 56,000 people. island inhabitants.
“They're trying to present it as something attractive,” says a Western diplomat familiar with the talks.
Trump's interest in Greenland is nothing new. However, in recent weeks it increased the pressure significantlythreatening tariffs, suggesting the use of military force, and clearly linking trade sanctions with Denmark's willingness to sell the island.
On Saturday, Trump announced that he would impose a 10 percent tariff on Denmark and other European allied countries starting next month.
“For many years we have subsidized Denmark and all European Union countries, as well as others, without charging them customs duties or any other form of levy. Now, after centuries, it is time for Denmark to return the favor – world peace is at stake!” Trump wrote on Truth Social.
He added that ca “will remain due and payable until an agreement is reached on the complete purchase of Greenland.”
Europe's counterattack: tariffs, sanctions and the “bazooka”
European leaders reacted with fury — and are now openly discussing economic retaliation.
On Sunday, top EU diplomats met for crisis talks and debated resuming a plan to impose tariffs on US goods worth 93 billion euros (PLN 392 billion), which was suspended after a trade deal with Trump last summer.
French President Emmanuel Macron has called on other leaders to activate the EU's powerful anti-coercion instrument – known in Brussels as the “bazooka” – if Trump follows through on his tariff threats, French media reported, citing his team.
These rules, which have never been applied, would allow the EU to impose wide-ranging punitive measures on a country trying to force a policy change through economic pressure.
After Sunday's talks, European Council President Antonio Costa announced the convening of an extraordinary EU summit, which will probably take place on Thursday.
“The EU has demonstrated its readiness to defend itself against all forms of coercion,” Costa said.
In a joint statement, the leaders of Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland warned: “Threats of tariffs undermine the transatlantic relationship and risk a dangerous spiral of escalation. We are determined to defend our sovereignty.”
Italian Prime Minister Giorgia Meloni called Trump's tariffs a mistake. Dutch Foreign Minister David van Weel went even further, calling it “blackmail”.
However, Europe is not united on the issue of retaliation. — Currently, there is no question of using ACI [instrumentu przeciwdziałania przymusowi] or any other trade instrument towards the United States, warns one EU diplomat.
Retaliatory tariffs on goods worth EUR 93 billion (PLN 392 billion) remain suspended until February 6, and several officials stressed that they preferred dialogue. — Nobody wants a trade war over Greenland – admits another European official. — But no one can accept being forced to sell the territory.
NATO on the brink
Trump's move caused a shock in NATO. On Sunday, U.S. Treasury Secretary Scott Bessent rejected the idea that the United States must choose between Greenland and the alliance.
“It's obviously a false choice,” he said on NBC. When informed that European leaders had a different opinion, Bessent replied: European leaders will change their minds. They will understand that they must remain under the security umbrella of the United States.
He stressed that the United States would remain in NATO, but made it clear that Trump wanted to avoid being “drawn into” future wars. “We have no intention of outsourcing our security in the hemisphere to other countries,” Bessent said. — America must have control over this.
Former Vice President Mike Pence supported Trump's goal of acquiring Greenland but criticized the tactics. “I have concerns about using what I think is questionable constitutional authority to impose unilateral tariffs on NATO allies to achieve this goal,” Pence said on CNN.
Republican Congressman Michael McCaul warned of a military invasion of Greenland would mean war with NATO. “It would end in the abolition of NATO as we know it,” McCaul said on ABC.
Democratic Sen. Chris Van Hollen called Trump's actions a “land grab.” “It's not about safety,” he said. — Donald Trump wants to acquire Greenland's minerals and other resources.
Sharp criticism in the country
Trump's crusade against Greenland on Capitol Hill is met with sharp criticism from both parties.
Democratic Senate Minority Leader Chuck Schumer sharply criticized the threat of tariffs. “Donald Trump's reckless tariffs have already driven up prices and hurt our economy,” Schumer said. — Now it's only making things worse.
Van Hollen urged Republicans to support a war powers resolution to limit Trump's foreign military powers.
Former Biden adviser Michael Carpenter ridiculed NATO Secretary General Mark Rutte's diplomatic tweet about talking to Trump about Greenland. “It's better not to tweet if that's all you have to say,” Carpenter wrote.
President of the European Council Antonio Costa and President of the European Commission Ursula von der Leyen in Asuncion, Paraguay, 17 January 2026.LUIS ROBAYO / POOL / AFP / AFP
European Commission President Ursula von der Leyen adopted a defiant tone after talks with Macron, Rutte, British Prime Minister Keir Starmer, German Chancellor Friedrich Merz and Meloni.
“Together, we firmly uphold our commitment to maintaining the sovereignty of Greenland and the Kingdom of Denmark,” she wrote. “We will always protect our strategic economic and security interests.”
Davos: another flashpoint
All roads now lead to Davos.
Trump is expected to present his proposals for Greenland – from citizenship packages to a 100-year lease – to European leaders directly at the summit.
— Davos will be the moment of truth — says one Western official, adding:
Either the situation deescalates and a face-saving compromise is reached, or we are heading straight for a transatlantic trade and security crisis.
What started as an unlikely real estate fantasy turned into a full-fledged geopolitical confrontation.
With tariffs looming, NATO unrest, and Europe preparing to unleash its economic heavy guns, Trump's move on Greenland is no longer just a sideshow — it's a test of endurance for the Western alliance itself.
