President Trump’s demand for U.S. control over Greenland isn’t just diplomatic bluster—it’s reshaping the transatlantic alliance in real time.
Over the weekend, the situation escalated dramatically. Trump received a text from Norway’s prime minister urging calm, and his response stunned European leaders:
The message sent shockwaves through European capitals. Trump explicitly linked his Nobel Prize snub to abandoning “the pursuit of peace”—then pivoted to demanding Greenland.
Markets React
The rhetoric isn’t just diplomatic theater. On Tuesday, U.S. markets tumbled sharply:
The S&P fell into negative territory for the year—the first time in 2026. Investors fled to safe havens, with gold and silver hitting new records.
Europe’s Response
At Davos, French President Emmanuel Macron didn’t mince words about the potential consequences:
The “anti-coercion mechanism” Macron references is the EU’s so-called “bazooka”—a tool that could restrict U.S. tech firms, impose tariffs, and limit access to European financial markets. It’s never been used before. The fact that EU leaders are openly discussing deploying it against America marks a historic shift.
Treasury Secretary Scott Besson, also at Davos, urged restraint—while making clear the administration isn’t backing down:
The Reality on the Ground
But what is Greenland actually like? Wall Street Journal reporter Max Colchester flew to Nuuk, the capital, to find out. His assessment cuts against the “mineral El Dorado” narrative:
A country bigger than Mexico, 80% ice, with 57,000 people and less than 100 miles of paved road. The infrastructure challenges are staggering.
And the economic reality?
Denmark spends about a billion dollars a year subsidizing Greenland—covering healthcare, education, and defense. It’s not a gold mine waiting to be unlocked. It’s a money pit that would require massive federal investment.
What Greenlanders Think
Polls show a large majority of Greenlanders have no interest in becoming American. But Colchester found the picture more nuanced when he talked to locals:
“Absolutely not”—but also curious what the offer might be. That ambivalence may be the opening Trump is counting on.
The Bigger Picture
Whether this ends in negotiation or escalation, the Greenland standoff marks something significant: the moment when Europe started seriously contemplating America as a potential adversary rather than a steadfast ally.
As one analyst put it: if Trump goes through with economic coercion to seize territory from a NATO ally, “it is existential for the alliance.”
The spirit of dialogue at Davos this week will be tested like never before.
Explore more podcast coverage of the Greenland situation on Audioscrape.