Category World News

US President Donald Trump is in Davos, Switzerland, to attend the annual gathering of the World Economic Forum (WEF), where the issue of Greenland will be front and centre.

Trump’s long-running fixation on acquiring Greenland, an autonomous territory of NATO member Denmark, has escalated into a transatlantic imbroglio, with threats of sweeping new tariffs and even taking Greenland by military force rattling stock markets.

Speaking at a White House media briefing on Tuesday to mark one year since his second-term inauguration, he said Greenland was “imperative for national and world security”.

He warned the United Kingdom, Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland that they will face 10 percent tariffs on all goods from February 1, rising to 25 percent by June, unless they back his proposed takeover of the Danish autonomous territory. It comes as European leaders meeting in Davos warn the dispute risks a trade war and a rupture in the NATO alliance.

Where is Greenland?

Greenland is the world’s largest island, located mostly within the Arctic Circle between the Arctic and Atlantic oceans. Geographically, it is part of North America, lying northeast of Canada and west of Iceland, but politically it is an autonomous territory within the Kingdom of Denmark.

Approximately 80 percent of Greenland is covered by the Greenland ice sheet, the second-largest body of ice on Earth. Because the interior is largely uninhabitable, most of Greenland’s population lives along the coastline. The capital city, Nuuk, located on the southwest coast, is Greenland’s largest city, home to about one-third of the island’s roughly 56,000 residents.

Countries in the Arctic Circle

The Arctic Circle is an imaginary line at 66.5 degrees north that includes the North Pole, the northernmost point on Earth.

Eight countries, including Canada, Finland, Greenland, Iceland, Norway, Russia, Sweden and the United States, have land lying within this region.

Some Arctic countries are closer to each other than many people realise.

Greenland’s closest neighbour is Canada, and at its narrowest point, between the Nares Strait, the two countries are only 26km (16 miles) apart. Canada and Greenland also technically share a land border, having settled a decades-long dispute over Hans Island, a small rock in the strait, by dividing it in half.

Russia and the US are also neighbours, with Alaska and Russia separated by the Bering Strait, which is about 85km (53 miles) at its narrowest point – a distance similar to that between New York City and New Jersey.

In fact, when you count the Diomede Islands located within the Bering Strait, Russia and the United States are less than 4km (2.4 miles) apart. These small, rocky islands consist of Big Diomede, which belongs to Russia and hosts a weather station, and Little Diomede, part of Alaska. The islands are separated by the International Date Line, creating a 21-hour time difference and marking the boundary between North America and Asia.

How big is Greenland?

On some map projections, which enlarge landmasses near the poles, Greenland appears much bigger than it really is.

In reality, the Arctic island covers 2.17 million square kilometres (836,330 square miles), making it roughly three times the size of the US state of Texas, or about the same size as Saudi Arabia, Mexico or the Democratic Republic of the Congo.

Arctic shipping routes

Most of the Arctic is divided into exclusive economic zones (EEZ) extending 200 nautical miles (370km) from the territorial waters of states and where they have jurisdiction over natural resources.

According to data from Arctic Ship Traffic Data, the number of ships operating in the Arctic has increased 37 percent between 2013 and 2023, driven by melting ice and expanding economic opportunities in the region.

There are three main shipping routes in the Arctic, connecting the Atlantic and Pacific:

• The Northern Sea Route (NSR)/Northeast Passage runs along the Arctic coast of Russia and could cut maritime travel between East Asia and Western Europe by 10-15 days compared with travelling via the Suez Canal. In Soviet Russia, the route was used for military supplies and extraction of resources in the Arctic. Now Russia uses it to transport liquified natural gas (LNG).
• The Northwest Passage (NWP) crosses Canada’s Arctic Ocean and could cut maritime vessel journeys between East Asia and Europe by 10 days compared with vessels travelling via the Panama Canal.
• The Transpolar Sea Route (TSR) goes from the centre of the Atlantic to the Pacific Ocean and is a direct route via the North Pole. While this route avoids the territorial waters of Arctic states, it is rarely used due to the presence of permanent sea ice. Due to melting ice caps, it is predicted that this sea route may be fully open to vessels by the 2050s, potentially even sooner with high-strength icebreakers.
  

What is the military presence in the Arctic?

Greenland has one major permanent US base, the Pituffik Space Base, and several smaller Danish military facilities.

Pituffik Space Base, formerly known as Thule Air Base, is located in the northwest corner of the island. It supports missile warning, missile defence and space surveillance missions and satellite command and control. It is strategically positioned to counter Russian activities in the Arctic.

About 650 personnel are stationed at the base, including US Air Force and Space Force members, as well as Canadian, Danish and Greenlandic civilian contractors. Under a 1951 agreement with Denmark, the US is permitted to establish and maintain military facilities in Greenland as part of mutual defence within the NATO framework.

The North American Aerospace Defense Command (NORAD), a US-Canadian joint military organisation, also operates systems from Pituffik in the form of a Ballistic Missile Early Warning System (BMEWS) for the organisation’s space surveillance.

In Alaska, NORAD controls the Clear Space Force Station, equipped with missile warning, defence and space awareness capabilities. The US also implements forward operating locations – temporary military airfields and radar stations – in Alaska, which are used to extend US defence and response.

Denmark manages the defence of Greenland through the Joint Arctic Command (JAC) with its headquarters in the capital, Nuuk. The base’s main tasks are surveillance and search and rescue operations, and the “assertion of sovereignty and military defence of Greenland and the Faroe Islands”, according to Danish Defence.

According to the Center for Strategic and International Studies (CSIS), the Northern Sea route is central to Russia’s security posture in the Arctic. Control of the route sits with Rosatom, giving Moscow the ability to restrict foreign military traffic without direct government approval. In the eastern Arctic, access through the Bering Strait has pushed Russia to expand radar coverage, search and rescue capacity and airfields, including the Sopka-2 radar installations on Wrangel Island and Cape Schmidt.

In the central Arctic, Russia has hardened its military footprint. Bastion-P and Pantsir-S1 systems – mobile defence systems – are deployed on Novaya Zemlya and Kotelny Island, extending area-denial across air and sea approaches.

In the western Arctic, the Northern Fleet, which oversees Russia’s second-strike capability, is based in Severomorsk. CSIS says Moscow has also reactivated dozens of Soviet-era facilities, reopening airbases, radar stations and border posts across the region.

Chinese investments in the Arctic

China has emerged as a key player in the Arctic, stating its desire to create a “Polar Silk Road”, similar to the Belt and Road Initiative, where new shipping routes would emerge as ice sheets recede.

According to the Carnegie Endowment, China views the Arctic as a future transport and industrial corridor. A number of Chinese companies also have mining projects in Greenland, including for iron ore, rare earths and uranium. China also has projects focused on Arctic energy via Russia’s LNG sector.

Chinese state-owned firms have stakes in Novatek’s LNG projects and are a major buyer of Arctic gas. The Chinese have also supplied key equipment to Russia’s Arctic LNG projects, especially after Western sanctions on Russia.

What are Greenland’s resources?

Greenland is rich in natural resources, including zinc, lead, gold, iron ore, rare earth elements (REEs), copper and oil.

It is home to some of the world’s largest deposits of rare earths used in high-tech industries. These resources have attracted significant attention, including from President Trump.

Gold pockets exist in areas like Nanortalik and South Greenland. Greenland also has deposits of diamonds in the Maniitsoq region, just north of Nuuk.

Copper deposits are largely unexplored in Greenland, according to the Mineral Resources Authority, with areas in the northeast and central east largely untapped. Iron ore deposits are dotted around West Greenland, while nickel traces have been found around the island’s southwest coast.

Graphite, used mostly in EV batteries and steel-making, is also reported to exist in Greenland, with exploration around Amitsoq. While zinc has been found in the north of Greenland, titanium and vanadium deposits are located in the southwest, east and south of the territory. Tungsten is also found in central east and Northeast Greenland with assessed deposits in the south and west.

A brief history of Greenland

The first Inuit people settled in Greenland in about 2500 BCE.

In the 10th century, Norse explorers arrived in Greenland and established settlements. By 1721, Denmark had made Greenland a colony.

Though a Danish territory, Greenland became self-governing in 1979 after more than two centuries under Danish control. It is one of Denmark’s two autonomous territories, with the Faroe Islands being the other.

In 1941, during World War II, the US and Denmark agreed to allow American forces to defend Greenland. Its strategic location was vital for countering German submarines and securing shipping routes. The US maintained a military presence throughout the Cold War, using Greenland for early-warning radar and monitoring Soviet activity.

In 2009, Greenland gained self-rule over most of its internal affairs, including control over natural resources and governance. However, Denmark still handles foreign policy, defence and funding.

Transatlantic tensions over Greenland have ratcheted up between the United States and European nations as President Donald Trump doubles down on his ambitions to acquire the self-governing island, which is part of the Kingdom of Denmark.

In a social media post following a phone call with NATO Secretary-General Mark Rutte on Tuesday, Trump said there is “no going back” on Washington’s plans. Trump added that he would meet “the various parties” in Davos, Switzerland, during this week’s annual summit of the World Economic Forum (WEF).

Last weekend, Trump threatened to increase trade tariffs for European countries which oppose his attempt to acquire Greenland. Since the tariff threats, the European Union has been contemplating its response, with some members calling for the implementation of the bloc’s never-before-used “trade bazooka” option of retaliatory tariffs and restrictions.

Given Europe’s decades-long dependence on Washington, which has only deepened in recent years, could the EU take action against the US, and could that risk a serious transatlantic rift?

What has Trump said about Greenland this week?

Trump made a series of posts on his Truth Social platform on Tuesday, reiterating his ambition to acquire Greenland and stating that he would meet European leaders in Davos to discuss the issue.

In one post, Trump wrote that he had a “very good telephone call” with Rutte about Greenland. “I agreed to a meeting of the various parties in Davos, Switzerland. As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back – On that, everyone agrees!” he added.

In a separate post, Trump shared a screenshot showing messages, presumably from Rutte, in which he wrote, “I am committed to finding a way forward on Greenland.”

In another post, he shared screenshots of messages from French President Emmanuel Macron, who wrote, “I do not understand what you are doing in Greenland.” In the messages, Macron also offered to set up a Group of Seven meeting in Paris on Thursday.

Trump also posted mockup images created using artificial intelligence (AI) tools on Tuesday, showing himself holding the US flag in Greenland with a sign stating “US territory”. Vice President JD Vance and Secretary of State Marco Rubio are depicted in the image, standing behind him.

Another image Trump shared shows him in an Oval Office meeting with European leaders. It includes a map on an easel showing the US flag spanning Canada, Greenland and Venezuela.

Why does Trump want Greenland?

The sparsely populated Arctic island of 56,000 people – mostly Indigenous Inuit – is geographically in North America but politically part of Denmark, making it part of Europe. Greenland withdrew from the European Community (EC/EU) in 1985 after it gained home rule, but maintains a special association with the EU as an Overseas Country and Territory (OCT), which grants limited internal market access and EU citizenship to Greenland’s residents through Denmark.

Trump has long coveted Greenland because of its strategic location and plentiful mineral deposits, including highly sought-after rare-earth metals required for the manufacture of a wide range of technology from smartphones to fighter planes. The island has therefore drawn increasing interest from leading powers as climate change opens up new shipping lanes in the Arctic.

Currently, Greenland’s economy relies mainly on fishing; locals oppose large-scale mining, and there is no oil or gas extraction.

The island’s geographical position between the Arctic and North Atlantic oceans provides the shortest air and sea routes between North America and Europe, making it crucial for US military operations and early-warning systems, especially around the Greenland-Iceland-United Kingdom gap, according to the Trump administration.

What trade tariffs is Trump threatening?

On January 17, Trump said, starting February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would be charged a 10 percent tariff on their exports to the US.

On June 1, the tariff would be increased to 25 percent, he said. “This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,” Trump wrote on Truth Social.

A day after Trump posted this threat to social media, the 27 EU members convened for an emergency meeting.

In a joint statement, the eight countries targeted by Trump with new tariffs said they “stand in full solidarity” with Denmark and the people of Greenland, a semi-autonomous Danish territory.

“Building on the process begun last week, we stand ready to engage in a dialogue based on the principles of sovereignty and territorial integrity that we stand firmly behind,” the statement said.

“Tariff threats undermine transatlantic relations and risk a dangerous downward spiral. We will continue to stand united and coordinated in our response. We are committed to upholding our sovereignty.”

What action could Europe take against Trump over Greenland?

European leaders are contemplating several responses to Trump’s threat, ranging from diplomacy to retaliatory tariffs to the extreme, last-ditch “trade bazooka” – the Anti-Coercion Instrument (ACI) – which could target specific goods and services the US has a trade surplus in with the EU.

However, the never-before-used ACI, which was adopted by the EU in 2023 following restrictions placed on Lithuanian exports by China, would likely take months to implement. It requires the agreement of a minimum of 15 EU countries, representing at least 65 percent of the bloc’s population. It also requires a months-long investigation process.

How much does Europe depend on the US?

Europe has a growing dependence on Washington in various sectors.

Defence

In recent years, Europe has become increasingly dependent on the US for military and intelligence support, especially since the start of Russia’s war in Ukraine in February 2022.

Even before that, the US was providing Ukraine with significant intelligence support, which has not been detailed publicly. However, reports and officials highlight two crucial roles it has played – first, satellite and signals intelligence help Ukraine anticipate and prepare for Russian attacks, and second, it helps locate enemy troops and bases so Ukrainians can target them with missiles, including long-range systems which can reach inside Russian territory.

European NATO states received 64 percent of their arms imports from the US between 2020 and 2024, up from 52 percent during 2015-19, according to a report by the Stockholm International Peace Research Institute (SIPRI) published in March 2025.

The US contributed about 16 percent of NATO’s common budgets, the joint largest contribution, matched only by Germany’s, according to a NATO breakdown published last year.

“Militarily, nearly half of Europe’s recent procurement comes from the US, especially in critical backbone capabilities such as combat aircraft, missiles, air defence, software-driven systems and sustainment,” Christine Nissen, chief analyst at the Copenhagen-based Think Tank Europa, told Al Jazeera.

“These dependencies are deeply locked in through platforms, upgrades, spare parts, data and interoperability.”

Economy

Europe is also highly dependent on the US for the provision of technology services and economic infrastructure, such as cloud services, semiconductors, digital platforms, satellite services, cybersecurity, energy technologies and parts of the financial system, Nissen said.

“In many of these domains, Europe relies on US firms, standards and regulatory reach, which amplifies Washington’s leverage in a confrontation.”

Investors in European countries hold more than $10 trillion of US Treasury bonds.

Bonds are investments through which investors lend money to a government or a company for a set time in exchange for regular interest payments and the original capital back at maturity to whoever is holding the bond at the time. Bonds can be bought and sold on financial markets, so the issuer of the bond may ultimately pay back a different investor from the one who first bought it.

Bonds usually offer lower returns than stock market shares but are seen as low-risk, especially government bonds.

US Treasury bonds are particularly popular as they are viewed as “safe-haven” assets. If US-Europe relations turn hostile, however, that safe haven would become highly politicised as there could be a perceived danger that the US might not repay the initial capital brought to buy the bonds.

Furthermore, if there is a rift in transatlantic relations, investors could panic and start selling off US Treasury bonds en masse. When lots of people sell at the same time, the price of bonds drops. This would mean that the value of the bonds EU members own would decline, and they would lose money on their huge pile of US bonds.

While this would be bad for the US economically, it would also mean that European holders of the bonds would no longer be able to fully rely on this stash of “safe” assets and might have difficulty finding other places big and stable enough to move that money to.

“The [economic] dependency is mutual but asymmetric. For the US, Europe is mainly a major market and industrial partner, a commercial dependence. For Europe, the reliance is operational, technological and security-critical,” Nissen said.

“That asymmetry gives Washington durable structural influence, regardless of who occupies the White House.”

Energy

Following Russia’s invasion of Ukraine in February 2022, Europe has imposed sanctions on Russian oil and has gradually reduced its energy dependence on Russia.

Europe’s imports of Russian gas fell by 75 percent between 2021 and 2025, according to a report by the US-based Institute for Energy Economics and Financial Analysis (IEEFA), published on Monday.

Instead, Europe increased energy imports from the US, especially liquefied natural gas (LNG).

Europe’s imports of US LNG jumped from 21 billion cubic metres (bcm) in 2021 to 81bcm in 2025 – almost a fourfold increase. “This means that EU countries sourced 57 percent of their LNG imports from the US in 2025,” the IEEFA report states.

The report also states that if the EU takes all the US LNG it has signed up for, and does not cut its gas use, by 2030, the US could be supplying almost 75 to 80 percent of its imports.

What happens if Europe-US relations break down?

Europe has a lot to lose.

“A serious rupture with the US would likely reduce Europe’s access to critical military support, technology, intelligence, energy flows and parts of the financial and digital ecosystem,” Nissen said.

That dependence is why Europe has usually tried hard so far not to clash with the US, she said.

“In the short term, Europe cannot meaningfully decouple without real capability and economic costs,” Nissen said.

Therefore, she added, Europe is unlikely to abruptly break from the US, but rather gradually shift away from it by building new trading partnerships and developing its production capabilities for essential goods and services.

“Over the past weeks, Europe has started to move more explicitly toward diversification as a strategic hedge: reducing single-supplier exposure, widening partnerships and strengthening internal resilience,” Nissen said.

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