Military exercises, tariffs, diplomacy and economic pressure combine to threaten to shake them on many levels. Greenland, once a quiet strategic island, is developing into a central front of a transatlantic crisis.
Already, the US-European standoff over this Arctic island is “hitting red”, with Donald Trump increasing tariffs until the US is “allowed to buy” the strategically important island. , stressing that they will not back down, while the German industry warns of serious economic consequences.
Communication Rutte – Trump
NATO Secretary General Mark Rutte said he had a phone call with the US president about the “security situation in Greenland and the Arctic”.
“We will continue our efforts and I look forward to meeting him in Davos at the end of the week,” he said in a post on X.
Spoke with regarding the security situation in Greenland and the Arctic. We will continue working on this, and I look forward to seeing him in Davos later this week.
— Mark Rutte (@SecGenNATO)
For his part, Denmark’s foreign minister confirmed that he had come to an agreement with the US vice president on a diplomatic route and underlined the firm support of the EU, trying to dissuade Trump from thinking that he “must own Greenland”.
European solidarity: “Europe is not being blackmailed”
The eight countries involved – Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom – issued a joint statement condemning the tariff threats.
“The threats undermine transatlantic relations and carry the risk of dangerous escalation,” they said, stressing that military exercises in the Arctic pose no threat to anyone.
Danish Prime Minister Mette Frederiksen said she was “satisfied with the consistent and unified messages” she was receiving from the rest of Europe. The attitude of Germany and Sweden was similar.
German Chancellor Friedrich Merz underlined his country’s support for Denmark and the people of Greenland, warning that the tariffs “undermine transatlantic relations”. At the same time, it was clarified that the German military mission in Greenland was completed normally, rejecting scenarios of an early withdrawal.
The Dutch foreign minister called Trump’s actions “blackmail”.
Coordinated European response and ‘countermeasures’
Cyprus, which holds the rotating presidency of the EU, has convened an emergency meeting of ambassadors in Brussels, as consultations for a joint response intensify. According to sources, French President Emmanuel Macron is pushing to activate the “Anti-Coercion Instrument” – the so-called “bazooka”, which could limit US access to public tenders, investments or financial activities.
The proposal is supported by MEPs and economic bodies, although Ireland and Italy appear more cautious. Italian Prime Minister Giorgia Meloni called the threats “wrong,” revealing that she had recently spoken to Trump, who she said “showed a willingness to listen.”
Uncertainty about trade agreements as well
In the UK, Culture Secretary Lisa Nundy stressed that London’s position on Greenland was “non-negotiable”, but called for escalation to be avoided. Trump’s threats now also cast doubt on the recent US-EU trade agreements. and USA-UK, with the European Parliament considering the freezing of the relevant process.
Characteristic of the tension is that a German parliamentarian even raised the possibility of a boycott of the soccer World Cup, which is being hosted in the USA this year, as a “last measure” of pressure on the American president.
German industry on alert
Moreover, German industry reacted strongly, warning that the threat of tariffs would hurt the economic recovery.
The president of the VDMA (Association of German Machinery and Plant Manufacturers), Bertram Kavlath, warned that a retreat of the E.U. will encourage Trump to make new “absurd demands.”
Volker Trier of the DIHK (Association of German Chambers of Industry and Commerce) stressed that “political goals are linked to economic sanctions in an unacceptable way”.
Both called for a unified EU response, possibly through the “Coercive Mechanism,” which allows countermeasures against third countries that pressure member states.
The cost of tariffs for Volkswagen, Mercedes and BASF
The tariffs are already affecting German industry:
- Volkswagen estimates costs of up to 5 billion euros for 2025.
- Other major manufacturers, such as Mercedes-Benz, Porsche and the chemical BASF, have also suffered losses.
The IG Metall union warned that further tariff increases could jeopardize the recovery of Europe’s biggest economy. “This kind of American trade policy does not create winners. It hurts consumers, workers and companies on both sides of the Atlantic,” said Thorsten Groeger.
