Image: from Daniel | Swe X@D2Cerberus
By Open Chronicle News Desk with Agencies | January 20, 2026
BRUSSELS / DAVOS – The European Union has entered a state of diplomatic emergency following President Donald Trump’s ultimatum: the “complete and total purchase” of Greenland, or the imposition of crippling tariffs on European allies. The dispute, which has escalated rapidly over the last 72 hours, now threatens to dissolve the NATO alliance and spark the largest trade war in modern history.
On Saturday, Trump announced 10% tariffs, set to rise to 25% by June, on eight nations that sent troops to Greenland for military exercises: Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland.
“Blackmail” and the “Trade Bazooka”
European leaders have reacted with unprecedented fury. Dutch Foreign Minister David van Weel described the tactics as “blackmail,” while Swedish Prime Minister Ulf Kristersson warned that the EU would not be “intimidated.” In Brussels, officials are already drawing up a list of retaliatory tariffs on €93 billion worth of American goods.
António Costa, President of the European Council, has called for an emergency summit this Thursday to discuss activating the bloc’s “anti-coercion instrument”, a powerful economic tool, often referred to as the “trade bazooka,” designed to punish countries that use economic pressure to force political changes.
A Sovereignty Crisis
The heart of the conflict lies in the status of Greenland, a semi-autonomous territory within the Kingdom of Denmark. While Trump argues that U.S. ownership is “imperative for national and world security” to counter Russian and Chinese influence, Danish and Greenlandic leaders remain steadfast.
“The answer from Denmark and Greenland is final: We will never hand over Greenland,” stated Rasmus Jarlov, chair of the Danish parliament’s defense committee. Greenlandic Prime Minister Jens-Frederik Nielsen echoed this sentiment, stating plainly: “If we have to choose between the United States and Denmark, we choose Denmark.”
NATO at the Breaking Point
The crisis has sent shockwaves through the NATO alliance. By threatening to impose tariffs on fellow members for conducting security exercises on their own soil, Trump has called the viability of the transatlantic defense pact into question. French President Emmanuel Macron warned that Europe would not change its course, stating that “no intimidation or threat will influence us.”
Even traditionally close allies have broken ranks. Italian Prime Minister Giorgia Meloni called the tariffs a “mistake,” while British Prime Minister Keir Starmer described them as “completely wrong,” insisting that Greenland’s future is a matter solely for the Greenlanders and the Danes.
The View from Davos
As global elites gather for the World Economic Forum in Davos, U.S. Treasury Secretary Scott Bessent has urged European partners to “take a deep breath” and avoid “hysteria,” suggesting that a solution would be found. However, Trump has doubled down on Truth Social, posting: “Greenland is imperative… There can be no going back!”
With the February 1st deadline for the first wave of tariffs looming, the world watches to see if the “Art of the Deal” can survive a collision with European sovereignty, or if the Western alliance is destined for an irreparable break.