President Donald Trump’s pledge to provoke a sweeping tariff fight with Europe to get his way in taking control of Greenland has left many of America’s closest allies warning of a rupture with Washington capable of shattering the NATO alliance that had once seemed unshakable.
The European Union’s top official on Tuesday called Trump’s planned new tariffs on eight of its countries over Greenland a “mistake” and questioned Trump’s trustworthiness. French President Emmanuel Macron said the EU could retaliate by deploying one of its most powerful economic tools, known colloquially as a trade “bazooka.”
The rising tensions concerning Greenland, and threats of a deepening trade war between the U.S. and Europe, caused global investors to shudder Tuesday, as stocks on Wall Street slumped.
Trump prides himself on ratcheting up pressure to try to negotiate through a position of strength. He was leaving Washington Tuesday — the anniversary of his inauguration — for the World Economic Forum in Davos, Switzerland, a venue that offers Trump the chance to defuse tensions as quickly as he stirred them up.
But European leaders — digging in and vowing to defend Denmark and its control over semiautonomous Greenland — may be trying just as hard to meet an extraordinary moment with a show of their fierce resolve.
That could hurt the chances of Trump finding a quick way to turn around the crisis. Greenland’s leader insisted on respect for its territorial integrity and called international law “not a game.”
‘We will work something out’
Trump made an unusual appearance in the White House briefing room and spoke at length while stocks fell. Asked how far he’d be willing to go to acquire Greenland, Trump said only, “You’ll find out.” He also mistakenly referred to Greenland as Iceland at one point.
Still, the president predicted there could be a deal in the making. “I think that we will work something out where NATO is going to be very happy, and where we’re going to be very happy,” he said, without providing specifics.
Trump said he’d been encouraged that NATO had increased military spending, but he also belittled the alliance, saying other members may not protect Washington’s interests. The president suggested NATO members expect the U.S. to come to their rescue but “I just really do question whether or not they’ll come to ours.”
European Commission President Ursula von der Leyen pushed back against Trump’s announcement that, starting in February, a 10% import tax will be imposed on goods from eight European nations that have rallied around Denmark. Greenland is a semiautonomous territory of Denmark, a NATO member.
