The United States, through its trade representative Jameson Greer, warned European countries of the serious consequences that could result from invoking the trade “anti-coercion” mechanism, in response to former US President Donald Trump’s expressed interest in annexing Greenland from Denmark. Greer emphasized during his remarks at the Davos Economic Forum that a similar European move would be “unwise,” stressing that every country has the right to act in its own national interests, and that such decisions “naturally have consequences.”.
Background of the conflict and the strategic importance of Greenland
This tension stems from President Trump's expressed interest in purchasing Greenland, the world's largest island, which enjoys self-governance within the Kingdom of Denmark. This interest is not entirely new; US President Harry Truman offered to buy the island in 1946 for $100 million. Greenland's strategic importance lies in its vital geographic location in the Arctic, serving as a gateway to new shipping lanes emerging with the melting ice, as well as its vast natural resources of rare minerals, oil, and gas. Furthermore, it holds military significance as the host of the US Thule Air Base.
European instrument for combating coercion
The US warning came in the context of French President Emmanuel Macron's call for the European Union to use its "anti-coercive mechanism," a defensive tool designed to protect the bloc from economic pressure exerted by other countries to achieve political objectives. This mechanism allows the EU to impose countermeasures, such as tariffs or restrictions on trade and services. Trump had threatened to impose tariffs of up to 25% on eight European countries that opposed his policies, prompting Macron to call for a unified and firm European response.
Potential impacts on international relations
Activating this tool for the first time, especially against a strategic ally like the United States, would represent a dangerous escalation in transatlantic trade relations, which were already strained during the Trump administration. Domestically, both Denmark and the Greenland government have categorically rejected the idea of a sale, asserting that the island is not for sale. Internationally, this dispute highlights the growing geopolitical competition in the Arctic, where other global powers such as Russia and China are seeking to expand their influence. US Commerce Secretary Howard Lutenick indicated that any retaliatory tariffs from the European Union “would not be in Europe’s best interest,” calling for de-escalation. Greer emphasized that trading partners should not assume that “the US market will always be open to everyone,” adding an element of uncertainty to the future of global trade.
