Greenland Dispute Threatens EU-US Relations

Lisa Chang, Asia Pacific Correspondent
3 Min Read
⏱️ 2 min read

In a startling turn of events, the long-standing alliance between Europe and the United States is facing a serious test over the issue of Greenland. President Donald Trump’s insistence that the US needs Greenland for national security reasons has sent shockwaves through European capitals, as they grapple with the prospect of punitive tariffs or even a potential military confrontation.

Greenland, a semi-autonomous territory of Denmark, has become the focal point of a growing geopolitical tug-of-war. Trump has been leaning heavily on Denmark’s allies in the EU and NATO to abandon Copenhagen and allow the US to take control of the island, warning of severe economic consequences if they refuse.

The European response has been one of defiance. German Finance Minister Olaf Scholz declared, “We will not allow ourselves to be blackmailed,” while his French counterpart, Roland Le Corre, lamented, “We’re living through uncharted territories. We’ve never seen this before. An ally, a friend of 250 years, is considering using tariffs… as a geopolitical weapon.”

The EU is now adopting a “good cop, bad cop” approach, offering to support the US in prioritising Arctic security while simultaneously threatening retaliatory measures worth €93 billion (£80 billion) in tariffs on American goods or restricting access to the bloc’s single market. This delicate balancing act reflects the EU’s desire to engage with the Trump administration, rather than escalate the conflict.

However, the stakes are high, as Europe’s security and economic interests are deeply intertwined with the US. Sir Keir Starmer, the UK Prime Minister, acknowledged the need to maintain a “good relationship with the United States” for the sake of defence, security, and intelligence cooperation.

The situation has also caught the attention of Russia and China, who view the unravelling of the transatlantic alliance as an opportunity to expand their own influence. The proposed “Board of Peace,” a new international body reportedly being established by Trump, has raised concerns about the potential undermining of established institutions like the United Nations.

As the dispute over Greenland continues to unfold, Europe finds itself in a difficult position. It must navigate the complex web of economic, security, and geopolitical considerations, all while trying to maintain its unity and stand firm against Trump’s unilateral demands. The outcome of this confrontation could have far-reaching consequences for the future of the transatlantic relationship and the global order.

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Lisa Chang is an Asia Pacific correspondent based in London, covering the region's political and economic developments with particular focus on China, Japan, and Southeast Asia. Fluent in Mandarin and Cantonese, she previously spent five years reporting from Hong Kong for the South China Morning Post. She holds a Master's in Asian Studies from SOAS.
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