Donald Trump is expanding his obsession with Greenland globally – and the World Economic Forum in Davos, taking place this week, could become the most explosive moment yet in his Arctic power play.
Two sources familiar with Trump’s plans who spoke to Kyiv Post stated that the US President has tasked his team with preparing multiple options regarding Greenland, which will be proposed to European allies at Davos.
This move comes as the EU is considering sanctions and even the nuclear economic option against what European leaders perceive as Trump's attempt to forcibly annex a Danish territory.
"This is the most serious transatlantic rupture we've seen since the Iraq war," said a high-ranking Western official to Kyiv Post. "And it's unfolding on an island that most Europeans believed was off-limits forever."
Inside Trump's plan for Greenland
Trump, who publicly ruled out the possibility of leasing Greenland, is more flexible in private than his public statements suggest, according to Alex Raufoglu, Kyiv Post's correspondent in Washington who first revealed the US's intention to downsize troops in Romania.
Several sources say he might be open to a nearly century-long lease - 99 years, to be exact - a solution meant to ease European outrage while providing the US de facto control over the resource-rich Arctic island.
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Another option under consideration is granting Greenlanders rights akin to those of Puerto Rico.
In this scenario, Greenlanders would become American citizens with full bilateral access and trade privileges. They would be exempt from US income tax unless they move to the mainland.
"They're trying to present this as a sweetener," said a Western diplomat familiar with the discussions.
Trump's obsession with Greenland is not new. But in recent weeks, he has dramatically escalated the pressure - threatening with tariffs, suggesting military force, and explicitly linking trade penalties to Denmark's willingness to sell its vast island.
On Saturday, Trump announced a 10% tariff on Denmark and other European allies, starting next month.
"We have been subsidizing Denmark and all of the European Union countries, as well as others, for many years without charging them tariffs or any form of compensation," Trump wrote on Truth Social. "Now, after centuries, it is time for Denmark to pay up - world peace is at stake!"
He added that import taxes "will be due and payable until an agreement is reached for the full and complete purchase of Greenland."
Europe's Counterattack: Tariffs, Sanctions, and the "Big Bazooka"
European leaders have responded with fury - and are now openly discussing economic reprisals.
EU's top diplomats met on Sunday and discussed reinstating a plan to impose tariffs on American goods worth €93 billion, which had been suspended after last summer's trade deal with Trump.
French President Emmanuel Macron urged other leaders to activate the EU's powerful anti-coercion tool - known in Brussels as the "big bazooka" - if Trump continues with his tariff threats, according to French media, citing his team.
The law, which has never been used, would allow the EU to impose radical punitive measures on a country attempting to force a policy change through economic pressure.
After discussions, European Council President António Costa announced an emergency EU summit likely to take place on Thursday. "The EU has shown readiness to defend against any form of coercion," Costa said.
In a joint statement, the leaders of Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland warned: "Tariff threats undermine transatlantic relations and risk a dangerous downward spiral. We are prepared to maintain our sovereignty."
Italian Prime Minister Giorgia Meloni called Trump's imposed tariffs a mistake. Dutch Foreign Minister David van Weel went further, calling them "blackmail."
However, Europe is far from united on retaliatory measures. "There is currently no question of using the AIC (anti-coercion instrument) or any other trade tool against the US," warned an EU diplomat.
The €93 billion counter-tariffs remain suspended until February 6, and several officials have expressed a preference for dialogue.
"No one wants a trade war over Greenland," said another European official. "But no one can accept being forced to sell territory either."
NATO on the Brink
Trump's ideas have shaken NATO. US Treasury Secretary Scott Bessent rejected on Sunday the idea that the US must choose between Greenland and the alliance.
"This is clearly a false choice," he told NBC. When told that European leaders see things differently, Bessent responded: "European leaders will come around. And they will understand that they need to be under the US security umbrella."
He insisted that the US will remain in NATO - but made it clear that Trump wants to avoid being "suckered" into future wars.
"We will not outsource our hemispheric security to other countries. America needs to be in control here," Bessent said.
Former Vice President Mike Pence supported Trump's goal of acquiring Greenland but criticized the tactics.
"I have concerns about the use of what I think is a questionable constitutional authority, imposing unilateral tariffs on NATO allies to achieve this goal," Pence told CNN.
Republican Congressman Michael McCaul warned that a military invasion of Greenland would amount to a war with NATO.
And Democratic Senator Chris Van Hollen called Trump's initiative a "land grab."
"It's not about security," he said. "Donald Trump wants to get his hands on Greenland's minerals and other resources."
Davos: The Next Crisis Point
All roads now lead to Davos. Trump is expected to present his Greenland options - from citizenship packages to a century-long lease agreement - directly to European leaders on the sidelines of the summit.
"Davos will be the moment of truth," said a Western official, adding, "Either this situation de-escalates and turns into a compromise that saves face, or we are heading straight for a transatlantic trade and security crisis."
What began as a real estate fantasy with distant prospects has turned into a full-blown geopolitical confrontation.
With imminent tariffs, a shaken NATO, and Europe gearing up its significant economic artillery, Trump's Greenland strategy is no longer a sideshow - it is a stress test for the Western alliance itself.