Europe rallied this week to push back against President Donald Trump in the Greenland crisis, but its leaders recognize that the clash is unlikely to be the last in relations with his increasingly tough counterpart, the United States.
The stakes could hardly be higher, given the $2.000 trillion trade relationship between the European Union and the United States, as well as the dominant role Washington continues to play in NATO and in supporting Ukraine against Russia.
This week, within hours of each other at the World Economic Forum's annual meeting in Davos, Trump first ruled out taking Greenland by force and then withdrew his threat to impose new tariffs on eight European countries that stood in his way - instead hailing a vague deal on the Arctic island with NATO chief Mark Rutte.
European leaders believe Trump has backed down in part because, unlike the more lenient stance in last year's tariff negotiations, they have made it clear this time that he is crossing a red line with this.
"All this shows that you cannot let the Americans trample over the Europeans," said the EU official, who requested anonymity to speak openly about relations with the US.
"We did the right thing by fighting back, by being firm in what we said, but it's not over. I have a feeling we will be constantly tested on issues like this," the official told Reuters.
While Europe may have learned the value of standing up to Trump, the challenge is to ensure it is less exposed next time.
"It's a difficult path and it will take time," Rosa Balfour, director at Carnegie Europe, told the British agency, adding that Europe has "far more leverage than it has dared to use."
European leaders called for last year's EU-US trade deal to get back on track at an emergency summit on Thursday evening, after MEPs suspended its ratification in protest over Greenland.
"Despite all the frustrations and anger of recent months, let's not be too quick to write off the transatlantic partnership," said German Chancellor Friedrich Merz.
Italian Prime Minister Giorgia Meloni is also cautious about the U.S. approach, having presented Trump’s arguments to the EU behind closed doors this week in an effort to ease transatlantic tensions. At a summit in Brussels on Thursday, Meloni told EU colleagues that confronting Trump was a bad idea because Europe had everything to lose in a conflict with America, four people familiar with the leaders’ discussions told Politico. Instead, she urged them to remain calm and not write Trump off as crazy or unpredictable, as some officials have privately described him in international affairs.
The approach of Merz and Meloni, who presented a joint plan in Rome yesterday to simplify EU regulations, strengthen industrial policy and strengthen cooperation in the areas of energy, defense and migration, differs from that of French leader Emmanuel Macron, who this week insisted on a tough stance towards Washington.
Speaking after the summit, European Commission President Ursula von der Leyen suggested that leaders had learned this week that confronting Trump in a "firm" but "non-escalating" manner was an effective strategy that they should continue.
While seeking to stabilize the partnership, Europe is simultaneously taking steps aimed at “de-risking” it, given the open hostility of Trump, whose new national security strategy accuses the continent of “smuggling” on defense and demands that it open its markets to American companies.
Europe is well aware of how long it can take to reach agreement among 27 countries with different histories, policies, and economies, as US Treasury Secretary Scott Besant reminded us this week.
Two EU officials said the dispute over Greenland had accelerated discussions about how the approach used in the Ukraine case - in which countries voluntarily offer security guarantees and no one has a veto power - could be expanded.
“We should work more through coalitions of the willing and leave the door open for others to join if they want,” said one of them, adding that joint efforts to strengthen European development of artificial intelligence technology could be one example.
Coalitions like the "E3" group, which consists of France, Germany and Britain and deals with security issues, also allow for the participation of non-EU countries, which is a message to others who are under attack from Trump's policies.
“Middle powers must act together, because if we are not at the table, then we are on the menu,” Canadian Prime Minister Mark Carney said in a speech in Davos, to loud applause. The second way is to use the space provided by EU law.
Europe also plans to tighten economic policy, according to Reuters.
Next month, it will launch a legislative initiative that will include “Made in Europe” requirements in strategic sectors, as well as strengthening conditionality clauses for every foreign direct investment in the EU.
“Some provisions were originally designed to reduce dependence on China, but in reality they will help us reduce risk in relation to other markets as well,” European Commissioner for Prosperity and Industrial Strategy Stephane Séjournay told Reuters.
"This will completely change the European doctrine in these sectors," added Séjourne.
Unlike Canada, there is no plan in Europe to turn more toward China to compensate for transatlantic tensions. But the bloc is actively seeking other partners in an effort to diversify relations.
While the impact of higher US tariffs on European goods is unclear - indeed, Europe's trade surplus with the US initially grew in 2025 as companies shipped exports ahead of the new levies - the latest data shows that German companies almost halved their investments in the US last year.
After signing the EU-Mercosur agreement this month, the largest in the bloc's history, Ursula von der Leyen said the Union was now "on the threshold" of a deal with India.
Yet no one is claiming that Europe can redress its imbalance with the United States overnight, especially when it comes to security. Despite European promises to sharply increase defense spending and even calls for the creation of an EU army, analysts say it will be years before its military power is up to the task, which now includes strengthening security in the Arctic.
The question is whether the last few weeks will be the catalyst for Europe to start reducing its dependence on the US. “None of this is a surprise,” said Swedish Deputy Prime Minister Eba Busch, speaking about Trump's appearance in Davos.
"The EU needs to tighten its approach," she told Reuters.
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