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Geopolitical Shock at Davos: U.S.–EU Rift Over Greenland and Trade Deal

 


Tensions between longstanding Western allies surged sharply at the 2026 World Economic Forum in Davos, where U.S. President Donald Trump reignited controversy by publicly pushing for control over Greenland an autonomous Danish territory as part of strategic defense plans. In his speech, Trump insisted the island’s ownership was crucial for national security, even floating the idea of a future “framework deal” with NATO, despite strong pushback from European leaders.

The geopolitical friction went further: EU lawmakers froze advancement on a major U.S. EU trade agreement, citing Trump’s Greenland claims and tariff threats as violations of trust between allies. European Council leaders stressed only Denmark and Greenland have the authority to decide their future and vowed to protect international law and sovereignty.

Trump also pledged not to use military force in an apparent retreat but stopped short of dropping broader ambitions, prompting mixed reactions from European capitals and even emergency summit planning to address broader trade and security relations.

This diplomatic drama underscores how U.S. policy rhetoric especially when tied to critical Arctic resources and alliance solidarity can upend economic cooperation and strain decades of transatlantic economic and security ties. 

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