Overview
- Trump’s plan sets 10% U.S. import tariffs on eight European allies from Feb. 1, rising to 25% on June 1 unless a Greenland transfer is negotiated.
- In his Davos address, Trump said he won’t use force to acquire Greenland, while Greenland’s prime minister said the U.S. has not definitively ruled out that option.
- EU officials vowed to respond if tariffs take effect, weighing the Anti‑Coercion Instrument and a revived multibillion‑dollar tariff package as Ursula von der Leyen insisted that recent U.S.–EU trade commitments be honored.
- Markets swung on the dispute, with the S&P 500 down about 2%, the Nasdaq off more than 2%, volatility jumping, gold hitting records, and a Danish pension fund disclosing sales of U.S. Treasurys.
- Greenlandic and Danish leaders reiterated that the island is not for sale, as U.S. officials in Davos urged partners to hear out Washington’s strategy and signaled further meetings on the standoff.