Trump links Greenland threat to Nobel Peace Prize snub, EU eyes trade retaliation

EU leaders meet Thursday in Brussels to weigh options, including tariffs on 93b euros of US imports from Feb 6

United States President Donald Trump linked his drive to take control of Greenland to his failure to win the Nobel Peace Prize, saying he no longer thought “purely of peace”, as the dispute over the island on Monday threatened to reignite a trade war with Europe.

Trump has intensified his push to wrest sovereignty over Greenland from fellow Nato member Denmark, threatening punitive tariffs on countries standing in his way and prompting the European Union to weigh retaliatory measures.

The dispute risks further destabilising the Nato alliance, already under strain over the war in Ukraine and Trump’s insistence that allies increase defence spending, while also plunging EU-US trade relations back into uncertainty after the two sides reached a fragile deal last year following sweeping US tariffs.

In a written message to Norwegian Prime Minister Jonas Gahr Stoere seen by Reuters, Trump said: “Considering your country decided not to give me the Nobel Peace Prize for having stopped eight wars plus, I no longer feel an obligation to think purely of peace, although it will always be predominant, but can now think about what is good and proper for the United States of America.”

Nobel Prize snub

The Norwegian Nobel Committee awarded the 2025 Nobel Peace Prize to Venezuelan opposition leader Maria Corina Machado, a decision that angered Trump. Machado handed her medal to Trump during a White House meeting last week, though the Nobel Committee said the prize cannot be transferred, shared or revoked.

Read More: Europe counters Greenland tariff threat

In his message, Trump again accused Denmark of being unable to protect Greenland from Russia or China.

“... and why do they have a ‘right of ownership’ anyway?” he wrote, adding: “The world is not secure unless we have complete and total control of Greenland.”

Trump vowed on Saturday to impose escalating tariffs from February 1 on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, as well as Britain and Norway, until the US is allowed to buy Greenland.

EU leaders say they will not be blackmailed

EU leaders will discuss options at an emergency summit in Brussels on Thursday. One option under consideration is a package of tariffs on 93 billion euros ($108b) of US imports that could automatically take effect on Feb 6 following a six-month suspension.

Another option is deployment of the bloc’s Anti-Coercion Instrument (ACI), which has never been used and could restrict access to public procurement, investment, banking activity or trade in services, including digital services where the US runs a surplus.

The EU said it continued to engage “at all levels” with Washington but stressed that use of the ACI remained on the table.

The dispute is expected to dominate discussions at the World Economic Forum in Davos, where Trump is due to deliver a keynote address on Wednesday, his first appearance at the event in six years.

German Finance Minister Lars Klingbeil and French Finance Minister Roland Lescure, meeting in Berlin, pledged a united European response to any additional US tariffs.

“Germany and France agree: we will not allow ourselves to be blackmailed,” Klingbeil said.

Also Read: Starmer opposes US tariffs on allies, warns of 'downward spiral' over Greenland threats

British Prime Minister Keir Starmer called for calm dialogue between allies, saying he did not believe Trump was considering military action to seize Greenland.

“A tariff war is in nobody’s interests,” Starmer said, adding Britain would not retaliate against new US tariffs.

Russia declined to comment on whether US ambitions over Greenland were positive or negative but said it was difficult to dispute expert views that Trump would “go down in world history” if he succeeded.

Read More: Thousands join anti-Trump ‘Hands off Greenland’ protests in Denmark

Economic shockwaves

Trump’s threats have rattled European industry and financial markets, reviving fears of a return to the volatility seen during last year’s trade war.

“This latest flashpoint has heightened concerns over a potential unraveling of Nato alliances and the disruption of last year’s trade agreements,” said Tony Sycamore, a market analyst at IG in Sydney.

European shares fell on Monday, while the dollar weakened as investors sought safe-haven currencies.

Oliver Burkhard, CEO of German submarine maker TKMS, said the dispute should prompt Europe to strengthen its strategic autonomy.

“There are nicer ways than nudges like that,” he told Reuters, “but it may be necessary to get a kick in the shin to realise that we may have to suit up differently in the future.”