Trump heads to Davos amid EU tariff tensions over Greenland

Tuesday 20 January 2026 - 10:50

By: Dakir Madiha

Trump heads to Davos amid EU tariff tensions over Greenland

President Donald Trump is set to take center stage at the World Economic Forum in Davos, Switzerland, where escalating trade frictions with European allies over his renewed push to acquire Greenland threaten to overshadow the annual gathering of global leaders. The 56th forum, running from January 19 to 23, has been thrust into the spotlight by Trump's weekend announcement of new tariffs targeting eight European nations: Germany, France, the United Kingdom, the Netherlands, Finland, Sweden, Norway, and Denmark. These measures hinge on reaching a deal for the United States to purchase the mineral-rich Danish territory in the Arctic.

The proposed tariffs, starting at 10 percent on February 1 and rising to 25 percent by June 1, would layer onto existing duties, currently at 10 percent for the UK and 15 percent for EU members. European leaders have decried the move as economic coercion, plunging transatlantic ties into crisis. A joint statement from the eight affected countries warned that such tariff threats endanger longstanding relations and risk a dangerous escalation spiral. European Council President Antonio Costa has called for an extraordinary summit to address the standoff.

In response, the European Union is weighing retaliatory duties worth 93 billion euros on U.S. imports and considering activation of its unused anti-coercion instrument. This powerful tool could bar American firms from the bloc's single market. French President Emmanuel Macron has reportedly urged swift deployment of what he calls a commercial bazooka.

U.S. Treasury Secretary Scott Bessent, leading the largest American delegation ever at Davos, arrived early to temper concerns. Dismissing the uproar over Greenland as hysteria, he told forum journalists on Monday: "It's been 48 hours. Sit down and relax. I'm convinced leaders will refrain from stoking tensions, and this will end positively for all sides." Trump plans a keynote address on Wednesday, meetings with CEOs from finance, cryptocurrencies, and consulting at a White House reception, and a signing ceremony Thursday for his controversial Gaza-linked "Board of Peace" initiative.

Over 2,500 leaders from more than 130 countries, including 64 heads of state and government, are attending this high-stakes event. Transatlantic strains could delay a European Parliament vote on ratifying last summer's EU-U.S. trade deal. Political economist Mark Blyth questioned Trump's Davos appearance, suggesting it signals dominance: "Unless they fall in line, they don't matter."