As the world’s political and business elite gather in the Swiss town of Davos for the annual World Economic Forum, tensions are high as US President Donald Trump arrives, facing a potentially frosty reception from European leaders.
Trump’s threats to seize the autonomous territory of Greenland, a part of Denmark, and his promises to impose tariffs on European nations who oppose him, have risked tearing the transatlantic alliance apart. Nato’s Secretary-General, Mark Rutte, has urged “thoughtful diplomacy” as the only way to deal with the growing tensions between the US and its European allies.
The US Treasury Secretary, Scott Basent, has further inflamed the situation, dismissing Denmark as “irrelevant” and brushing aside concerns that European investors might pull out of the US market. Basent’s comments have been described as “inflammatory” by European leaders, with French President Emmanuel Macron and European Commission President Ursula von der Leyen warning of a robust response.
Von der Leyen has said that the EU must become “faster and stronger” in a world defined by “raw power,” adding that the dispute over Greenland would only embolden geopolitical rivals. She has stressed that the EU “prefers dialogue and solutions,” but is “fully prepared to act” if necessary.
Trump’s arrival in Davos was delayed by a “minor electrical issue” with his presidential jet, but he has said he believes “we will work something out” with the European leaders. The Finnish President, Alexander Stubb, has expressed hope that a diplomatic solution can be found, despite the “curveballs flying in different types of direction.”
The European Parliament is expected to suspend the ratification of an EU-US trade deal sealed in July, and the EU is considering a package of tariffs on $93 billion (£80 billion) of US imports or the use of its “anti-coercion instrument” in response to Trump’s threats.
As the world watches the unfolding drama, the stakes are high, with the future of the transatlantic alliance and the global economic order hanging in the balance.
