What we're covering
• Greenland tensions: European countries are weighing using their “trade bazooka,” an “Anti-Coercion Instrument,” after US President Donald Trump threatened tariffs on European allies, including the UK, until a deal is reached for the purchase of Greenland.
• UK slams tariff threat: British Prime Minister Keir Starmer said it is “completely wrong” to impose tariffs on allies, and that “any decision about the future status of Greenland belongs to the people of Greenland and the people of Denmark alone.”
• Putin invited to Gaza board: Russian President Vladimir Putin has been invited to join Trump’s “Board of Peace,” the committee that will oversee the reconstruction of Gaza, his spokesman said.
EU's priority is "to engage, not escalate" tariff situation, spokesperson says
Amid threats from US President Donald Trump that he will impose tariffs on several European countries in his pursuit of acquiring Greenland, a spokesperson for the European Commission has said that the priority among EU leaders is to “engage, not escalate, and avoid the imposition of tariffs.”
If tariffs are imposed, however, the EU “has tools at its disposal and is prepared to respond, because we will do everything necessary to protect EU economic interests,” he said.
European leaders are “consulting intensively,” while “engagement with the US is continuing at all levels,” Gill said.
Trump's niece tells Europe to "fight back" against Greenland tariff threat
President Donald Trump’s niece has urged Europe to “fight back” following the US leader’s threat to impose tariffs on eight countries that oppose a takeover of Greenland.
Quoting a New York Times headline that reads “European Officials Lean Toward Negotiating, Not Retaliating, Over Trump Threat,” Mary Trump said that she was “so f**king tired” of people trying to negotiate with her uncle.
Stocks fall, gold hits record after Trump threatens Europe with tariffs over Greenland
Stocks in Europe weakened, while the price of gold – a safe-haven asset – reached a new peak after US President Donald Trump threatened tariffs on European allies until a deal was reached for the US purchase of Greenland.
In the United States, where markets are closed Monday, Dow futures were 0.9% down, while S&P 500 futures dropped by a steeper 1.2%.
The US president announced Saturday that he would impose a 10% tariff from February 1 on goods from eight European countries. Trump didn’t specify whether the tariff would be on top of what they’re already paying.
In response, the European Union is considering imposing €93 billion ($108 billion) of previously announced retaliatory tariffs against the United States. French President Emmanuel Macron has also reportedly called for the activation of the EU’s so-called anti-coercion instrument. Colloquially known as a “trade bazooka,” the instrument could block some of America’s access to EU markets or result in export controls, among other potential measures.
“Given their deep economic and financial ties, both the US and Europe have the ability to impose significant pain on each other, but only at great cost to themselves,” Jonas Goltermann, a senior markets economist at consultancy Capital Economics, said in a note Monday.
“As such, the more likely outcome, in our view, is that both sides recognise that a major escalation would be a lose-lose proposition, and that compromise eventually prevails. That would be in line with the pattern around most previous Trump-driven diplomatic dramas.”
Trump ties Greenland bid with failure to win Nobel prize, says no longer has "obligation" for peace
US President Donald Trump tied his ambitions to annex Greenland to his so-far unsuccessful bid for a Nobel Peace Prize in an extraordinary message to Norway’s prime minister, according to a European diplomat who has seen the note.
“Dear Jonas: Considering your Country decided not to give me the Nobel Peace Prize for having stopped 8 Wars PLUS, I no longer feel an obligation to think purely of Peace, although it will always be predominant, but can now think about what is good and proper for the United States of America,” Trump wrote in the message, which was addressed to Norwegian Prime Minister Jonas Gahr Støre.
It came in response to a text message Støre had sent to the president opposing his plans to levy new tariffs on European nations who oppose his bid to control Greenland.
The contents of the note were sent to other European diplomats afterwards.
“Denmark cannot protect that land from Russia or China, and why do they have a ‘right of ownership’ anyway? There are no written documents, it’s only that a boat landed there hundreds of years ago, but we had boats landing there, also,” Trump wrote in the message.
Read more about Trump’s letter to Norway here.
This post has been updated with additional reporting.
Kremlin special envoy will travel to Davos to meet US delegation on sidelines of WEF
Russian President Vladimir Putin’s top economic envoy will travel to the Swiss resort town of Davos to hold meetings with members of the US delegation, sources with knowledge tell CNN.
Kirill Dmitriev, the head of the Russian sovereign wealth fund (RDIF) and Kremlin special envoy will meet Trump administration officials on the sidelines of the World Economic Forum, the sources added.
Kremlin says Putin was invited to join Trump’s "Board of Peace" for Gaza
Russian President Vladimir Putin has been invited to join US President Donald Trump’s “Board of Peace,” the committee that will oversee the reconstruction of Gaza, his spokesman said on Monday.
“President Putin also received through diplomatic channels an invitation to join this Board of Peace,” Dmitry Peskov told reporters.
He said the Kremlin is now reviewing the invitation and “hoping to get more details from the US side.”
Some context: The establishment of the board, chaired by Trump, is a key step in the United Nations-backed American plan to demilitarize and rebuild Gaza, which was ravaged by two years of war between Israel and the Hamas militant group.
Described by Trump as the “the Greatest and Most Prestigious Board ever assembled,” the committee will include former British Prime Minister Tony Blair, Canadian Prime Minister Mark Carney and US Secretary of State Marco Rubio.
Nuclear deterrent requires UK to have good relations with US, Starmer says
British Prime Minister Keir Starmer said the United Kingdom’s nuclear deterrent requires it to have good relations with the United States.
The prime minister said the UK’s nuclear deterrent “is our foremost weapon… when it comes to securing the safety of everybody in the United Kingdom, (which is) my primary duty.”
The prime minister stressed that it is not right for the UK to “choose between the US and Europe,” because it remains allies of both.
Imposing tariffs on allies “is completely wrong,” says Starmer says after Trump’s Greenland threat
British Prime Minister Keir Starmer said it is “completely wrong” to impose tariffs on allies, after US President Donald Trump said he would impose additional levies on the United Kingdom and several other countries that oppose his plan to acquire Greenland.
Stressing that the UK and US remain “close partners,” Starmer said he needed to set out a principle “that cannot be set aside, because it goes to the heart of how stable and trusted international cooperation works.”
Starmer said that “a trade war is in no one’s interest,” and that he had spoken to Trump and European leaders on Sunday “to find a solution rooted in partnership, facts and mutual respect.”
On Saturday, Trump said he will charge an additional 10% tariff on goods from the UK and several other European countries from February 1.
The EU is considering its "trade bazooka" after Trump threatened tariffs over Greenland. Here's the latest
Tensions are simmering between European countries and the United States over President Donald Trump’s threat to impose tariffs on the bloc as he demands that Denmark-ruled Greenland be ceded to his country.
Where things stand:
Emergency meeting: The European Commission is expected to provide an update today after the EU’s 27 ambassadors held an emergency meeting to discuss Greenland and Trump’s tariff threat. French President Emmanuel Macron reportedly asked the EU to activate its “Anti-Coercion Instrument,” known as the “trade bazooka.” It could block some of America’s access to EU markets or impose export controls, among other potential countermeasures.
European leaders speak out: Eight European countries, including the UK, Germany and France, issued a joint statement saying that “tariff threats undermine transatlantic relations and risk a dangerous downward spiral.” European Council President Antonio Costa also announced he will convene an extraordinary meeting in the coming days.
US official weighs in: Treasury Secretary Scott Bessent said Europe will “understand” America’s proposed takeover of Greenland as part of a broad defense against China and Russia.
Survival gear sales up: Shopkeepers in Greenland’s capital Nuuk have told CNN that sales of survival gear have significantly increased recently, with locals worried about military action or other forms of instability. Camping stoves, dried foods and freeze-dried meals are being bought up, multiple shopkeepers said.
Why Trump says he wants Greenland
President Donald Trump’s pursuit of Greenland is not new.
He inquired about the possibility of buying Greenland during his first term and, despite being told by the island that it’s “not for sale,” he revived those calls in December 2024.
The US already has a security foothold in Greenland, a legacy of the Cold War when the territory’s proximity to Russia made it an essential monitoring post in the event of a missile attack.
Before that, the US tried several times to buy Greenland, most recently in 1946.
Here are possible reasons why Trump keeps turning his attention to the island:
- Security: “We need Greenland for national security, not for minerals,” Trump said. Moscow also sees the region as vital to its defense, with more than a quarter of Russia’s territory in the Arctic. And China has entered the fray, declaring itself to be a “near-Arctic state,” and pursuing a “Polar Silk Road.”
- Shipping: Greenland lies between the US and Europe and astride the so-called GIUK gap – a maritime passage between Greenland, Iceland and the UK that links the Arctic to the Atlantic Ocean. As the climate crisis melts Arctic ice, northern shipping routes become navigable for more of the year.
- Resources: Greenland has rich natural resources, including oil, gas and rare earth minerals. While Trump has downplayed its significance, his former national security adviser Mike Waltz told Fox News in 2024 that the administration’s focus on Greenland was “about critical minerals” and “natural resources.”
CNN’s Alejandra Jaramillo, Nic Robertson, Sophie Tanno, Michael Rios and Issy Ronald contributed reporting.
European Council to hold extraordinary meeting on Greenland tensions
European Council President Antonio Costa said he will convene an extraordinary meeting of the council in the coming days regarding US-Europe tensions over Greenland.
A European Union official told CNN the meeting will be held in person in Brussels toward the end of the week.
Costa said that after consulting with member states, European leaders are in agreement that US President Donald Trump’s threatened tariffs would undermine transatlantic relations.
They also said they were ready to continue “engaging constructively” with the US but would defend themselves against any form of coercion, Costa said on X.
