U.S. President Donald Trump has reignited tensions over Greenland, linking his desire to control the island to his snub for the Nobel Peace Prize. In a recent interview, Trump hinted at imposing tariffs on European nations if no agreement is reached, causing concern about a potential trade war reminiscent of 2025. The European Union is considering retaliation in response to Trump's intensified efforts to assert sovereignty over Greenland from Denmark.
The situation risks destabilising NATO; it is already under pressure due to conflicts like the war in Ukraine and discussions about defence spending. European industries are on edge, and financial markets have reacted with apprehension, fearing a repeat of past economic volatility. Trump's recent communications further complicate intergovernmental relations, with Norway's Prime Minister Jonas Gahr Stoere attempting to de-escalate the situation.
After Venezuelan opposition leader Maria Corina Machado received the Nobel Peace Prize instead of Trump, the conflict escalated. In text messages to Stoere, Trump expressed dissatisfaction and questioned Denmark's claim over Greenland against threats from Russia or China. Trump announced potential tariffs on various EU countries starting February 1 unless the U.S. gains control of Greenland.
Danish and Greenlandic leaders have rejected the pressure, asserting local autonomy and adherence to international law. Denmark's military is currently conducting exercises in Greenland, demonstrating its stance on sovereignty. Meanwhile, EU leaders are gathered to discuss their response, which may include implementing tariffs on U.S. imports or employing the rarely used "Anti-Coercion Instrument."
Norway and Germany are preparing to discuss conflict with Trump at the World Economic Forum in Davos. U.S. Treasury Secretary Scott Bessent downplayed assumptions that the dispute is linked to the Nobel Prize, framing Greenland as a strategic asset. However, the potential for tariffs and trade barriers remains a concern for transatlantic relations.
EU leaders are set to meet in Brussels for an emergency summit to deliberate on their course of action. Measures under consideration could initiate automatically after a suspension period if tensions do not ease. The situation is complex, but Britain’s Prime Minister Keir Starmer has called for calm, indicating he does not believe Trump will resort to military intervention for Greenland, reported Reuters.
Key Takeaways:
Trump connects Greenland control ambitions to Nobel Prize snub.
EU weighs response options amid trade war concerns.
Discussions at Davos may influence ongoing disputes.
Adapted by ASEAN Now from Reuters 2026-01-20
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