At the World Economic Forum in Davos 2026, French President Emmanuel Macron delivered a robust defence of Europe amid escalating tensions with the United States over President Donald Trump's tariff threats linked to Greenland. Macron highlighted Europe's predictability, loyalty, and adherence to the rule of law as key strengths, despite acknowledging the need for internal reforms to address sluggishness.

He positioned the continent as a reliable partner for global cooperation in an era of unpredictability.

Trump's aggressive stance on Greenland, an autonomous Danish territory, has sparked outrage by tying a proposed 10% tariff on EU imports to demands for American control, citing Arctic security concerns. 

European leaders view this as economic coercion, prompting discussions on activating the EU's Anti-Coercion Instrument (ACI), often dubbed the "trade bazooka." This tool could impose sweeping restrictions, including tariffs, quotas, investment limits, and even suspension of intellectual property rights for US firms.

Macron described the tariff linkage as "crazy," regretting the potential use of the ACI against a NATO ally but framing it as a necessary response to "unpredictability and useless aggressiveness." He contrasted Europe's preference for "respect over bullies" and "rule of law over brutality," extending a welcome to partners while vowing to protect sovereignty. France has participated in military exercises in Greenland with Denmark, underscoring European resolve.

European Commission President Ursula von der Leyen echoed this firmness, pledging an "unflinching" response and warning that such tariffs risk a "downward spiral" in transatlantic ties.

She stressed collective Arctic security through NATO, noting Finland's icebreaker sales to the US as evidence of shared goals despite the rift. The EU has prepared retaliatory lists targeting $108 billion in US exports like whiskey, soybeans, and aircraft, set for activation on 7 February unless de-escalated.

The crisis jeopardises a recent US-EU trade deal involving $750 billion in US energy purchases and reduced tariffs, exacerbating strains from Trump's "America First" policies. Macron accused the US of seeking to "weaken and subordinate Europe" through relentless competition and tariffs used as leverage against territorial integrity. He advocated for European autonomy, including a "European preference" in markets to mirror North American protections.

Denmark and other allies have rejected Trump's overtures outright, with emergency EU meetings convened to strategize. Observers draw parallels to China's rare-earth tactics that forced Trump to back down previously, suggesting the EU might divest from US treasuries or complicate American business operations.

French Foreign Minister Jean-Noel Barrot supports suspending the trade deal, gaining momentum in the European Parliament.

Broader implications loom for NATO unity and global trade, as Trump's Davos speech looms amid vows from Canadian and French leaders to push back. Macron urged effective multilateralism to counter the "brutalization of the world," serving interests of those rejecting the rule of force. Europe's tools, now stronger post-2023 ACI adoption, signal readiness to deploy them if respect falters.

This row underscores a decaying global order, with Europe accelerating independence in security, economy, and defence. While prioritising dialogue to shield consumers and businesses, Brussels remains poised for escalation. The Greenland flashpoint tests transatlantic bonds forged in World War II, potentially reshaping alliances in the Arctic geopolitics era.

IDN (With Agency Inputs)