European leaders are preparing for a high-stakes confrontation with former U.S. President Donald Trump this week at the World Economic Forum in Davos, Switzerland. The flashpoint is Trump's threat to impose punitive tariffs on eight European nations, a move directly tied to the ongoing diplomatic standoff over Greenland's sovereignty.
A Tense Opening Act in the Swiss Alps
The annual gathering of global political and business elites opened under a cloud of trade tension. European Commission President Ursula von der Leyen and French President Emmanuel Macron are set to address the forum on Tuesday, January 20, 2026. They will share the stage with Chinese Vice Premier He Lifeng and Canadian Prime Minister Mark Carney, whose nations have also navigated turbulent trade relations with the Trump administration.
Their speeches will serve as a prelude to Trump's own appearance, where he is scheduled to deliver a keynote address on Wednesday and participate in further events on Thursday. Analysts expect his presence and the unusually large U.S. delegation, led by Treasury Secretary Scott Bessent, to dominate the week's discussions, challenging the forum's traditional focus on multilateral cooperation.
The Tariff Threat and a Stark Warning
The core of the dispute lies in Trump's leverage of trade policy to pressure the European Union regarding Greenland. In response, the EU is actively weighing retaliatory countermeasures. Secretary Bessent, already on the ground in Davos, issued a blunt warning to European counterparts, stating that any EU retaliation "would be very unwise."
Von der Leyen underscored the EU's position after meeting with a bipartisan U.S. congressional delegation in Davos on Monday. She emphasized on social media the critical need "to unequivocally respect the sovereignty of Greenland and of the Kingdom of Denmark."
The escalating crisis has prompted leaders from the 27-nation bloc to schedule an emergency summit in Brussels on Thursday. This meeting aims to formulate a unified response to what many consider one of the most severe tests of transatlantic relations in recent years.
Allied Voices Urge De-escalation
Other European leaders at Davos expressed deep concern. Finnish President Alexander Stubb called the tariff threats "unacceptable" at an allied level, warning they weaken the transatlantic relationship and could trigger a damaging cycle of retaliation. When questioned about the potential for U.S. military action, Stubb dismissed the idea, stating, "I don't believe that the United States will take control of Greenland militarily."
In a bid to address security concerns, Denmark has proposed that NATO commence surveillance operations in Greenland. German Chancellor Friedrich Merz, who plans to meet with Trump on Wednesday, echoed the desire for calm, noting a European consensus to avoid escalation "if at all possible."
Global Leaders Navigate a Shifting Landscape
The tensions have accelerated diplomatic realignments. Notably, Canadian Prime Minister Mark Carney arrives in Davos fresh from a visit to Beijing, where he secured a preliminary trade agreement with China. This move is widely seen as an effort to reduce Canada's economic reliance on the United States amid Trump's imposition of tariffs on Canadian goods.
As the forum unfolds, the world watches to see if the picturesque setting of Davos can foster dialogue or if it will merely become the backdrop for a further deterioration in U.S.-European relations. The outcome of this high-altitude standoff will have significant repercussions for global trade and geopolitical stability throughout 2026.
