President Donald Trump arrives at the World Economic Forum in Davos, Switzerland this week leading the largest American delegation in the summit’s history, but the real agenda has nothing to do with the conference’s official theme of “A Spirit of Dialogue.”
Trump is walking into a diplomatic firestorm of his own making, one that has transformed the annual gathering of global elites into an emergency summit over the future of the NATO alliance itself.
The president is scheduled to deliver a special address Wednesday, fresh off announcing 10% tariffs on eight European NATO allies for opposing his increasingly aggressive campaign to acquire Greenland. Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland now face economic penalties set to escalate to 25% by June unless they capitulate to Trump’s demands for the Arctic territory.
A Summit Becomes A Crisis Meeting
What was supposed to be a venue for discussing artificial intelligence and global economic cooperation has morphed into something far more consequential. European Council President Antonio Costa has called an “extraordinary meeting” of all 27 EU leaders. NATO Secretary-General Mark Rutte confirmed he spoke with Trump and agreed to facilitate a meeting of “various parties” in Davos specifically about Greenland.
Trump’s framing of the situation leaves little room for diplomatic maneuvering. “As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back,” he posted on Truth Social Monday morning, adding that “on that, everyone agrees.” The problem is that almost no one in Europe actually agrees.
Treasury Secretary Scott Bessent, already on the ground in Davos, has been working to manage expectations while simultaneously escalating the administration’s rhetoric. Speaking to CNBC Tuesday, Bessent revealed that Trump views Greenland as “essential for the Golden Dome missile shield,” a defense initiative that requires the island’s strategic Arctic position. “The national emergency is avoiding a national emergency,” Bessent explained, a circular logic that suggests the administration will use emergency powers to pursue acquisition regardless of legal constraints.
NATO At The Breaking Point
Danish Prime Minister Mette Frederiksen has been uncharacteristically blunt about the stakes. “If the United States chooses to attack another NATO country militarily, then everything stops,” she warned. Spanish Prime Minister Pedro Sanchez went further, calling any use of force against Greenland “the death knell for NATO.”
The irony is impossible to ignore. An alliance built to counter Soviet aggression now faces an existential threat from its own founding member. The US, which committed to defending NATO territory under Article 5, is now threatening to seize territory from Denmark, a fellow founding member that has suffered the highest per capita casualties of any NATO ally fighting alongside Americans in Afghanistan.
European military personnel deployed to Greenland last week for Operation Arctic Endurance, a joint exercise intended to demonstrate allied commitment to Arctic security. Trump interpreted these deployments as provocation, triggering his tariff announcement. Eight NATO allies are now facing economic punishment for conducting legitimate military exercises on territory they’re obligated to help defend.
The European Response Takes Shape
European leaders have responded with unusual unity. In a joint statement Sunday, the eight targeted nations warned that Trump’s “tariff threats undermine transatlantic relations and risk a dangerous downward spiral.” French President Emmanuel Macron requested the EU activate its Anti-Coercion Instrument, a legal mechanism adopted in 2023 to counter economic pressure from hostile nations. That it might be deployed against the United States was never the intended scenario.
British Prime Minister Keir Starmer called the tariffs “completely wrong,” noting that “applying tariffs on allies for pursuing the collective security of NATO allies is wrong.” German Chancellor Friedrich Merz, French President Macron, and European Commission President Ursula von der Leyen will all be in Davos, creating the potential for direct confrontation with Trump and his delegation.
The Netherlands’ Foreign Minister David van Weel put it most directly: “It’s blackmail what he’s doing, and it’s not necessary. It doesn’t help the alliance, and it also doesn’t help Greenland.”
The American Delegation Arrives In Force
Trump’s Davos contingent includes Secretary of State Marco Rubio, Treasury Secretary Bessent, and special envoys Steve Witkoff and Jared Kushner. The presence of Witkoff and Kushner signals that Ukraine negotiations may also feature prominently, as both have been involved in back-channel discussions with Moscow and Kyiv. Ukrainian President Volodymyr Zelenskyy is attending in person, hoping to secure new security guarantees for any potential ceasefire deal with Russia.
The administration’s position is that European concerns will eventually fade. “The European leaders will come around, and they will understand they need to be under the US security umbrella,” Bessent told reporters. He urged partners to “take a deep breath” and let tensions “play out,” though it’s unclear what resolution looks like when Trump has declared there can be “no going back” on Greenland.
Why Greenland, Why Now
Trump’s pursuit of Greenland dates to his first term, when it was largely dismissed as a curiosity. The calculus has changed. The island’s vast mineral reserves, including rare earth elements critical for technology and defense manufacturing, have become strategically significant as Washington seeks to reduce dependence on Chinese supply chains. Russia and China have increased their Arctic presence, and Greenland’s location makes it essential for early warning systems and missile defense.
The US already maintains Pituffik Space Base in Greenland under a 1951 defense agreement with Denmark. That arrangement provides substantial military access, but Trump wants more: complete ownership and control. Three-quarters of Americans oppose the acquisition according to recent polling, and Greenlanders have protested in the streets against becoming American territory. None of this appears to factor into the administration’s calculations.
The Week Ahead
Trump’s Wednesday speech will be the focal point, but the sideline meetings may prove more consequential. Rutte has positioned himself as a potential mediator, though his texts to Trump, which the president shared publicly, suggest he’s focused primarily on maintaining the relationship rather than challenging American demands.
The fundamental question hanging over Davos is whether any accommodation is possible or whether Trump’s declaration that there can be “no going back” represents a genuine red line. European leaders spent the past year attempting to accommodate and flatter the president. That strategy has produced tariffs and threats of military action.
The alliance that has kept peace in Europe for nearly eight decades now faces something it was never designed to withstand: an attack from within. Whether Davos produces a diplomatic breakthrough or accelerates the transatlantic fracture depends largely on decisions made in the next 72 hours. The snow-covered Alps have hosted plenty of important conversations over the past five decades. This week may determine whether the postwar international order survives intact.