Europe Pushes for Diplomacy as Greenland Dispute Threatens Trade Fallout
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European leaders moved to cool tensions on Monday as a dispute involving Greenland and U.S. tariff threats risked escalating into a broader transatlantic trade conflict, with multiple EU institutions stressing restraint, dialogue and unity while preparing contingency measures.
Germany Warns Against Tariffs, Backs Greenland and Denmark
German Chancellor Friedrich Merz warned that threats of tariffs linked to Greenland would weaken, not strengthen, transatlantic relations, while reaffirming support for Greenland and Denmark’s sovereignty. Speaking ahead of the Davos forum, Merz said the world was “in a state of flux” and that Europe must adapt, but stressed that any talks with Washington must rest on territorial integrity and international law. While acknowledging shared concerns with the United States over long-term Arctic security, he noted that current U.S. military presence in the region was limited and cautioned against exaggerating immediate threats. Merz said Europe wants to avoid escalation, remains open to diplomacy with President Donald Trump, and would only consider EU countermeasures if tariffs deemed unreasonable are imposed.
European Commission Calls for Calm as Tariff Deadline Looms
The European Commission echoed that message, urging restraint as consultations continue among EU leaders and with Washington. Trade spokesperson Olof Gill said the EU’s priority is engagement rather than escalation, warning that tariffs would ultimately harm consumers, particularly in the United States. He confirmed that a €93 billion package of EU counter-tariffs, agreed last year, could come into force on Feb. 7 if Trump follows through on plans to impose tariffs on Feb. 2. Despite sharp rhetoric from some European leaders over recent U.S. threats, the Commission said the aim remains to resolve the dispute through talks as quickly as possible.
Greenland’s prime minister, Jens-Frederik Nielsen, said recent comments from Trump have not altered international support for Greenland’s right to decide its own future. In a public statement, Nielsen said Greenland would not be pressured and would continue to stand by dialogue, respect and international law. He described an upcoming meeting with NATO Secretary-General Mark Rutte as important for discussing Arctic security and said Greenland’s foreign minister would clearly present the territory’s position in Brussels.
European Parliament Signals Trade Deal Freeze
Meanwhile, the European Parliament is preparing to halt the ratification of last summer’s trade framework with the United States. Major political groups, including the European People’s Party, Socialists & Democrats and Renew, said the deal should not proceed this week in light of Trump’s tariff threats against several EU countries, as well as Norway and the UK. The move underscores growing unease in Brussels that the Greenland dispute is spilling into trade relations, even as EU leaders publicly stress their preference for de-escalation over confrontation.
