EU Commission Chief Ursula Von der Leyen warns the bloc is prepared to respond if the US president escalates the current dispute on Greenland and tariffs. Will European resolve be enough to shift Washington's position?

Davos

The United States has threatened to increase tariffs on several European countries until the U.S. is able to purchase Greenland.

Greenland Stand-Off

At the World Economic Forum in Davos, European Commission President Ursula von der Leyen addressed concerns over U.S. President Donald Trump's threats to take over Greenland and impose tariffs on European countries. Von der Leyen pledged that the EU's response would be 'unflinching, united and proportional,' while also stressing the importance of a strategic approach.

Although specific economic retaliation measures were not detailed, experts and EU officials discussed options such as tariffs and limiting U.S. market access. Despite these signals from Europe, President Trump indicated he did not expect significant resistance, while Greenland's prime minister advised citizens to be prepared for all outcomes.

EU vows robust response to Trump's Greenland threats

Ursula von der Leyen knew everyone was watching her in Davos. What message would she send to President Donald Trump amid the political instability he has fanned with threats to take over Greenland and impose tariffs on European countries? Our response will be unflinching, united and proportional. But beyond this, we have to be strategic about how we approach this issue. The European Commission chief didn't specifically mention the EU's economic retaliation options being hotly debated in Brussels, in capitals, and surely in the margins of the World Economic Forum. Tit-for-tat tariffs, or what's called the trade bazooka or nuclear option, a mechanism that could severely limit U.S. companies' access to the EU market. But she underscored the inconsistency between Trump's threats against Europe and his claims that Russia and China are posing imminent danger to Greenland. Plunging us into a downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape. But as von der Leyen was polishing her talking points, evidently taking care not to escalate rhetoric with the U.S., Trump was sending out his own signals, with no indication that compromise is what he sees on the horizon. Carnegie Europe director Rosa Balfour says the potential economic retaliation von der Leyen only alluded to in her speech should be made more explicit to the Trump team. If the U.S. administration pursues certain goals, they can be responsive, responses that will actually affect the U.S. economy. There is leeway for Europeans to signal, to deter, to persuade, to force Trump to come to the table, and that is the goal. But any European hope they've projected strength so far isn't getting through to Washington, judging from Trump's prediction for his planned discussions on Greenland and Davos. Well, I don't think they're going to push back too much. Look, we have to have it. As European leaders try desperately in Davos to change that plan, Greenland's prime minister is telling his citizens to be prepared for all scenarios.

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EU vows robust response to Trump's Greenland threats

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Greenland Stand-Off