President Donald Trump is set to headline the World Economic Forum in Davos this week, where discussions on his aggressive push for U.S. control over Greenland could define transatlantic relations. Despite public insistence on outright purchase, U.S. officials have prepared compromise options including a 99-year lease and a "Puerto Rico-style" citizenship model for Greenland's 57,000 residents, according to sources familiar with the plans.

Trump's fixation on the resource-rich Arctic island escalated after eight European nations—Denmark, Sweden, France, Germany, the UK, the Netherlands, Norway, and Finland—supported Denmark by sending troops for an Arctic military exercise. On January 17, he announced 10% tariffs on their goods starting February 1, rising to 25% by June 1, until a "complete and total purchase" deal is reached.

European Defiance and Countermeasures

European leaders have united against what they call "blackmail," with French President Emmanuel Macron deeming the tariffs "unacceptable" and Germany vowing a "united" response. The EU is considering its Anti-Coercion Instrument to restrict U.S. firms from public contracts and potential €93 billion in retaliatory tariffs, while lawmakers push to freeze the EU-US trade deal.

Danish Prime Minister Mette Frederiksen and Greenland officials reject any sale, emphasizing self-determination. A recent U.S.-Denmark-Greenland meeting led only to a vague working group, heightening tensions. European Council President Antonio Costa called an extraordinary Brussels summit.

Davos Showdown Looms

Trump arrives Wednesday with Treasury Secretary Scott Bessent, Nvidia's Jensen Huang, and Microsoft's Satya Nadella, plus Russia's Kirill Dmitriev meeting U.S. delegates. National security advisors discuss Greenland on the sidelines.

As of January 20, 2026, no breakthroughs reported; a Western diplomat called Davos the "moment of truth" for de-escalation or trade war. Trump recently texted Norway's PM: "Since your country opted not to bestow upon me the Nobel Peace Prize... I can now consider what is beneficial... The world is not secure unless we have complete and total control of Greenland." EU prioritizes "engage, not escalate" via NATO Arctic security talks.