Trump's Greenland Tariff Threat: Europe Weighs Trade War or Diplomacy

• Donald Trump has threatened 10% tariffs on eight European nations starting February 1, escalating to 25% on June 1, to pressure Denmark into selling Greenland.
• The US president cites national security and historical US interest in acquiring resource-rich, strategically located Greenland.
• European leaders, including Denmark's PM Mette Frederiksen, have collectively rebuked Trump, expressing solidarity with Denmark and Greenland.
• Europe is considering retaliatory tariffs, deploying its Anti-Coercion Instrument, and re-implementing previously delayed tariffs against the US.
• Diplomacy remains an option, with leaders like Italy's Giorgia Meloni advocating for dialogue, and a potential de-escalation at the World Economic Forum in Davos.

Why It Matters: Trump's tariff threat over Greenland forces Europe to choose between trade war and diplomatic resolution.