Trump Pursuit of Greenland and Davos Rhetoric Strain USA-Europe Ties

European leaders signaled a breakdown in transatlantic trust following Donald Trump’s persistent interest in Greenland and his self-congratulatory rhetoric at the World Economic Forum. Swedish Prime Minister Ulf Kristersson and other EU officials called for increased continental independence after the 2026 USA defense strategy highlighted the strategic necessity of the Arctic territory. Financial analysts at UBS noted a shift in capital toward the Chinese tech sector as investors seek stability away from a weakening dollar and American geopolitical volatility.The current tension stems from a 1951 agreement with Denmark that already grants the USA extensive military freedom on the island where 10,000 personnel were once stationed during the Cold War.While the USA Space Force maintains early warning radars at the Thule base, the renewed push for ownership has prompted European governments to distance themselves from their traditional ally.