Key Points
- European leaders are presenting a united front against President Trump’s threats to impose tariffs on Greenland at the World Economic Forum in Davos.
- French President Emmanuel Macron called the situation “crazy” and said the EU should not bend to “bullies.”
- The EU is considering retaliatory measures, including its “anti-coercion instrument.”
- Some business leaders are worried the European response is too “emotional” and not pragmatic enough.
European leaders are trying to put on a united front in Davos this week as they grapple with President Trump’s latest trade threats over Greenland. French President Emmanuel Macron led the charge, saying the EU should not bend to “the law of the strongest” and that it was “crazy” that the bloc was even considering using its trade retaliation tools against the United States.
“We do prefer respect to bullies,” Macron told the World Economic Forum, a day before Trump is scheduled to arrive.
The firestorm was ignited last weekend when Trump announced new tariffs on European allies who have opposed his ambition to buy Greenland. The move has rattled European governments, who are now at odds over how to respond without alienating the U.S. and losing its support for the war in Ukraine.
European Commission President Ursula von der Leyen also struck a defiant tone, saying it’s “time to seize this opportunity and build a new independent Europe.”
However, behind the scenes, some business leaders are worried that the European response is too “emotional” and not pragmatic enough. They suggested that Europe needs to look past Trump’s style and engage in real negotiations.
“But they won’t even want to have that conversation, because they’re so offended by the style,” one senior banker told Reuters.
EU leaders are set to hold an emergency summit on Thursday to discuss possible retaliation. Meanwhile, U.S. Treasury Secretary Scott Bessent tried to calm the “hysteria,” saying he’s confident a solution can be found.
As the drama unfolds, Ukrainian President Volodymyr Zelenskiy is also in Davos, pushing for security guarantees and a post-war reconstruction plan. But with the world’s major powers at odds, it seems unlikely that any major decisions will be made.
