Trump’s Greenland Gambit: Davos, Tariffs, and a New Transatlantic Rift

Trump’s Greenland Gambit: Davos, Tariffs, and a New Transatlantic Rift

Estimated reading time: 6 minutes

• Tempered threats: Trump pulled back from overt plans to seize Greenland but signaled a hard line on the alliance’s strategic posture.
• Tariffs in play, but not yet: He pledged no immediate tariffs on certain European partners with modest troop deployments, easing trade fears—for now.
• Deal framework, no details: After a meeting with NATO’s secretary-general, he said a framework for a potential agreement exists, but specifics remain undisclosed.
• Transatlantic rift deepens: The confrontation marks the sharpest strain in the Atlantic alliance since the 1956 Suez crisis.

Background

Donald Trump’s rhetoric around Greenland has shifted in real time. He publicly backed off threats to take over the Danish territory, suggesting no force would be used. He appeared to recalibrate on the idea of tariffs, signalling a temporary pause on penalties for European countries that have stationed a small number of troops in the area. The situation illuminates the fragility of an alliance built on shared security and economic interests.

Davos speech and tariffs

During his Davos appearance, the president framed talks around a potential agreement but offered few details about what the deal would entail. His remarks kept European partners guessing about the balance between security commitments and trade concessions, stoking concerns about a big retaliatory response if US demands intensify.

NATO meeting and framework

Following a meeting with NATO’s secretary-general, a framework for a deal was announced, yet no concrete elements were provided. The absence of specifics fuels speculation about leverage, timelines, and enforcement mechanisms in a relationship already strained by questions of defense spending and strategic priorities.

Economic implications for Europe and the US

Markets and policymakers watch for how tariffs—or the threat of them—might recalibrate European industrial plans and American supply chains. The prospect of retaliation, especially from long-standing trading partners, raises the odds of a broader trade conflict that would complicate a synchronized approach to global challenges.

Outlook

Analysts warn that this episode underscores how quickly alliance dynamics can shift when national interests collide with shared commitments. The core question is whether a durable, mutually acceptable framework can emerge or if the rift will deepen as negotiations unfold, reshaping transatlantic cooperation for years to come.

Source: https://www.economist.com/the-world-this-week/2026/01/22/politics