By JAMEY KEATEN, Associated Press
DAVOS, Switzerland (AP) — The European Union’s top official on Tuesday called into question U.S. President Donald Trump’s trustworthiness, saying that he had agreed last year not to impose more tariffs on members of the bloc.
European Commission President Ursula von der Leyen called Trump’s planned new tariffs over Greenland “a mistake especially between long-standing allies.”
She was responding to Trump’s announcement that starting February, a 10% import tax will be imposed goods from eight European nations that have rallied around Denmark in the wake of his stepped up calls for the United States to take over the semi-autonomous Danish territory of Greenland.
“The European Union and the United States have agreed to a trade deal last July,” Von der Leyen said at the World Economic Forum in Davos, Switzerland. “And in politics as in business – a deal is a deal. And when friends shake hands, it must mean something.”
“We consider the people of the United States not just our allies, but our friends. And plunging us into a downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape,” she added.
She vowed that the EU’s response “will be unflinching, united and proportional.”
Trump has insisted the U.S. needs the territory for security reasons against possible threats from China and Russia.
Earlier Tuesday, U.S. Treasury Secretary Scott Bessent said America’s relations with Europe remain strong and urged trading partners to “take a deep breath” and let tensions driven the new tariff threats over Greenland “play out.”
Scott Bessent, US Secretary of the Treasury, holds a speech at the USA House during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Tuesday, Jan. 20, 2026. (AP Photo/Markus Schreiber)“I think our relations have never been closer,” he said.
Trump’s threats spark diplomatic flurry across Europe
The American leader’s threats have sparked outrage and a flurry of diplomatic activity across Europe, as leaders consider possible countermeasures, including retaliatory tariffs and the first-ever use of the European Union’s anti-coercion instrument.
The EU has three major economic tools it could use to pressure Washington: new tariffs, suspension of the U.S.-EU trade deal, and the “trade bazooka” — the unofficial term for the bloc’s Anti-Coercion Instrument, which could sanction individuals or institutions found to be putting undue pressure on the EU.
Earlier Tuesday, Trump posted on social media that he had spoken with NATO Secretary General Mark Rutte. He said “I agreed to a meeting of the various parties in Davos, Switzerland,” which is hosting the World Economic Forum’s annual meeting this week.
France’s Macron suggests G-7 meeting in Paris this week
Trump also posted a text message from Emmanuel Macron in which the French president suggested a meeting of members of the Group of Seven industrialized democracies in Paris after the Davos gathering.
Later, however, Trump posted some provocatively doctored images. One showed him planting the U.S. flag next to a sign reading “Greenland, U.S. Territory, Est. 2026.” The other showed Trump in the Oval Office next to a map that showed Greenland and Canada covered with the U.S. Stars and Stripes.
In a sign of how tensions have increased in recent days, thousands of Greenlanders marched over the weekend in protest of any effort to take over their island. Greenland Prime Minister Jens-Frederik Nielsen said in a Facebook post Monday that the tariff threats would not change their stance.
“We will not be pressured,” he wrote.
In his latest threat of tariffs, Trump indicated that the import taxes would be retaliation for last week’s deployment of symbolic numbers of troops from the European countries to Greenland — though he also suggested that he was using the tariffs as leverage to negotiate with Denmark.
Danish minister called for a stronger Europe in the face of Trump’s threats
Denmark’s minister for European affairs called Trump’s tariff threats “deeply unfair.” He said that Europe needs to become even stronger and more independent, while stressing there is “no interest in escalating a trade war.”
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Speaking on the sidelines of Davos, California Gov. Gavin Newsom slammed Europe’s response to Trump’s tariff threats as “pathetic” and “embarrassing,” and urged European leaders to unite and stand up to the United States.
“It is time to get serious, and stop being complicit,” Newsom told reporters. “It’s time to stand tall and firm, have a backbone.”
European markets open sharply lower
European markets opened sharply lower on Tuesday and U.S. futures fell further as tensions rose over Greenland. Benchmarks in Germany, France and Britain fell about 1%. The future for the S&P 500 lost 1.5% and the Dow future was down 1.4%.
With U.S. trading closed Monday for a holiday, financial markets had a relatively muted response to Trump’s threat to put a 10% extra tariff on exports from eight European countries that have opposed his push to exert control over Greenland. Jonas Golterman of Capital Economics described the situation as a lose-lose one for both the U.S. and the targets of Trump’s anger. He said, “It certainly fells like the kind of situation that could get worse before it gets better.”
UK replies to Trump’s Chagos Islands criticism
In another sign of tension between allies, the British government on Tuesday defended its decision to hand sovereignty of the Chagos Islands to Mauritius after Trump attacked the plan, which his administration previously supported.
Trump said that relinquishing the remote Indian Ocean archipelago, home to a strategically important American naval and bomber base, was an act of stupidity that shows why he needs to take over Greenland.
The United Kingdom signed a deal in May to give Mauritius sovereignty over the islands, though the U.K. will lease back the island of Diego Garcia, where the U.S. base is located, for at least 99 years.
AP writers Sylvie Corbet in Paris, Jill Lawless in London and Elaine Kurtenbach in Bangkok contributed to this report.
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