The European Union’s top official on Tuesday openly questioned U.S. President Donald Trump’s reliability, accusing him of undermining a trade agreement reached with the bloc last year. Speaking at the World Economic Forum in Davos, European Commission President Ursula von der Leyen said Trump’s plan to impose fresh tariffs over the Greenland issue was a “mistake,” particularly between long-standing allies.

Her remarks followed Trump’s announcement that the United States would impose a 10 per cent import tax from February on goods from eight European countries that have backed Denmark amid his renewed push for U.S. control over Greenland. Von der Leyen stressed that the EU and the U.S. had concluded a trade deal in July and said agreements between partners must be honoured. “In politics as in business, a deal is a deal,” she said.

Warning against further escalation, von der Leyen said plunging allies into a trade conflict would only benefit strategic rivals such as China and Russia. She added that the EU’s response to any unilateral U.S. action would be “unflinching, united and proportional,” signalling readiness for countermeasures if Washington proceeds with the tariffs.

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Trump has defended his stance by claiming Greenland is vital to U.S. security interests, citing potential threats from China and Russia. While U.S. Treasury Secretary Scott Bessent sought to downplay tensions by insisting transatlantic relations remain strong, Trump’s remarks and provocative social media posts have triggered outrage and diplomatic activity across Europe. Thousands of Greenlanders have also protested against any attempt to take over the island.

European leaders are now weighing possible responses, including retaliatory tariffs and the use of the EU’s powerful Anti-Coercion Instrument, sometimes dubbed the “trade bazooka.” Denmark called the tariff threats deeply unfair, while France floated the idea of an emergency G7 meeting. Meanwhile, European markets reacted negatively, underscoring growing fears that the Greenland dispute could spiral into a broader trade and geopolitical confrontation.

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