Protesters wave Greenlandic flags as they take part in a rally under the slogans ‘Hands off Greenland’ and ‘Greenland for Greenlanders’, in front of the City Hall in Copenhagen, Denmark on January 17. PHOTO: AFP
Europe may have rallied to see off President Donald Trump over Greenland, but its leaders recognise the confrontation is unlikely to be the last in dealings with his increasingly strident version of the United States.
The stakes could hardly be higher, given the $2 trillion trading relationship between the European Union and the US and the dominant role Washington continues to play in the Nato alliance and in support of Ukraine against Russia.
This week, in the space of a few hours at the World Economic Forum’s annual meeting in Davos, Trump first ruled out taking Greenland by force and then removed the threat of new tariffs on eight European states standing in his way — hailing instead a vague deal for the Arctic island with Nato Secretary General Mark Rutte.
European leaders believe Trump backed down in part because, in contrast to their more accommodating stance in last year’s tariff negotiations, this time they made it clear he was crossing a red line by asserting that Greenland’s status as an autonomous territory of Denmark was non-negotiable.
“All this shows that you cannot let the Americans trample all over the Europeans,” said a European Union official, who requested anonymity to speak candidly about US ties.
“We did the right thing to push back, to be firm in what we said, but it is not over. My sense is that we will be tested constantly on issues like this,” the official told Reuters.
While Europe may have learned the value of standing up to Trump, the challenge is ensuring it is less exposed next time.
Read More: Greenland’s PM unaware of details of Trump-Rutte deal
“It’s a hard route, and it’s going to take time,” said Rosa Balfour, director at Carnegie Europe, adding that Europe had “far more leverage than it has dared to use”.
Europe not seeking a split
An emergency summit of Europe’s leaders on Thursday called for last year’s EU-US trade deal to be put back on track after lawmakers suspended its ratification in protest over Greenland.
“Despite all the frustration and anger of recent months, let us not be too quick to write off the transatlantic partnership,” German Chancellor Friedrich Merz said in Davos beforehand.
While seeking to stabilise the partnership, Europe is also taking steps aimed at “de-risking” it, given the open antipathy from Trump, whose new national security strategy accuses the continent of freeloading on defence and demands it open its markets to US companies.
Europe is only too aware of how long it can take to reach agreement among 27 nations with different histories, politics and economies — a weakness highlighted this week by taunts from US Treasury Secretary Scott Bessent.
Two EU officials said the Greenland row has accelerated discussions on how the approach taken on Ukraine — in which countries offer security guarantees on a voluntary basis and no one has a right of veto — could be extended.
“We should do more with coalitions of the willing and leave it open for others to follow if they want,” said one official, adding that joint efforts to boost Europe’s development of artificial intelligence technology could be one example.
Coalitions such as the “E3” group comprising France, Germany and Britain, which focuses on security matters, also allow non-EU states to take part, a model that resonates with other countries on the rough end of Trump policies.
“The middle powers must act together, because if we’re not at the table, we’re on the menu,” Canadian Prime Minister Mark Carney said in a Davos speech to warm applause.
Another route under consideration is using the leeway afforded by EU law. In December, EU states used an emergency provision to indefinitely immobilise hundreds of billions of dollars of Russian assets, removing the risk of a pro-Moscow country such as Hungary blocking the roll-over of the measure and forcing the EU to return the money.
Also Read: Trump dropped Greenland military option after aides intervened, sources say
New European doctrine
Europe also plans to toughen its economic policy stance.
Next month, it will kickstart legislation that includes “Made in Europe” requirements for strategic sectors and stronger conditionality clauses for any foreign direct investment in the EU.
“Some provisions were originally conceived to reduce reliance on China, but in reality they will help us to de-risk from other markets,” European Commissioner for Prosperity and Industrial Strategy Stephane Sejourne told Reuters.
“This will totally change the European doctrine on those sectors,” Sejourne added.
Unlike Canada, Europe has no plan to pivot more towards China to compensate for transatlantic strains, but the bloc is actively pursuing diversification elsewhere.
While the impact of higher US tariffs on European goods remains unclear — Europe’s trade surplus with the US initially rose in 2025 as companies front-loaded exports ahead of new levies — recent data shows German companies nearly halved their investments there last year.
After the signing of the EU-Mercosur pact this month, the largest in EU history, European Commission President Ursula von der Leyen said the bloc was now “on the cusp” of a deal with India.
However, few believe Europe can redress its imbalance with the US overnight, particularly on security. Despite commitments to a defence spending surge and even calls for an EU army, analysts say it will be years before Europe’s military capabilities are sufficient for tasks that now include bolstering Arctic security.
The question is whether recent events will act as a catalyst for Europe to start reducing its US dependencies.
“All this is not surprising,” Swedish Deputy Prime Minister Ebba Busch said of Trump’s showing in Davos. “The EU needs to toughen up,” she told Reuters.
