- US Rejection of French Proposal: Treasury Secretary Scott Bessent criticised France's call for NATO-led military exercises in Greenland during Davos, urging Europe to prioritise domestic issues amid Trump's acquisition push.
- French Commitment to Drills: France announced readiness to contribute troops to NATO drills on the strategic Danish territory, framing it as support for Denmark without posing threats.
- Trump's Tariff Threats: President Trump threatened 10% tariffs on Denmark, Norway, Sweden, France, Germany, UK, Netherlands, and Finland from February 1, rising to 25% by June unless Greenland is sold to the US.
- European Military Build-Up: Denmark, Sweden, Germany, and others increased Arctic operations independently, responding to Russian/Chinese influence amid melting ice and new shipping routes.
- Geopolitical Context at Davos: Tensions peaked at the World Economic Forum, with Macron rejecting tariff leverage and NATO's Rutte managing discreetly; Greenland PM warned of preparing for all scenarios.
Davos (Washington Insider Magazines) – 21 January 2026 – The United States has rejected French proposals for NATO-led military exercises in Greenland, with Treasury Secretary Scott Bessent criticising the move amid President Donald Trump's renewed push to acquire the Danish territory. France announced readiness to contribute forces to such drills, as European nations bolster their presence in the Arctic region. Tensions escalate with US threats of tariffs on multiple European countries unless a purchase deal is reached.
France has formally called for a NATO military exercise in Greenland and stated its preparedness to participate, according to an announcement from the French presidency. This proposal comes amid heightened geopolitical interest in the self-governing Danish territory, driven by its strategic Arctic location and resources. The Elysee Palace confirmed France's intention on Wednesday, as global leaders gathered in Davos for the World Economic Forum.
French Proposal Details and NATO Context
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The French initiative aims to conduct a NATO-led drill on the island, with Paris ready to send troops. It remains unclear if the exercise would involve US forces, the alliance's largest contributor. French President Emmanuel Macron's office described the measure as supportive of Denmark, stating it poses no threat. Macron addressed the issue during his Davos speech on Tuesday, emphasising cooperation over confrontation.
NATO Secretary General Mark Rutte indicated ongoing discreet efforts to manage the situation. The proposal aligns with broader European military activities in Greenland, including independent exercises by Denmark, Sweden, and Germany. These actions respond to concerns over Russian and Chinese influence in the Arctic, as new shipping routes open due to climate change.
US Treasury Secretary's Direct Response
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Treasury Secretary Scott Bessent denounced the French push during a press interaction in Davos on Wednesday. He remarked that if French President Macron's focus is on such matters while France faces budget challenges, he should prioritise domestic issues. Bessent's comments preceded President Trump's anticipated arrival at the forum, delayed by three hours due to an aircraft electrical issue.
President Trump has linked US control of Greenland to countering adversarial powers in the region. The administration views the territory as essential for geopolitical security. Bessent's warning extended to European nations against deploying troops there, amid Trump's threats.
Trump's Tariff Threats and Timeline
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On Saturday, President Trump announced plans for 10 per cent tariffs on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, effective 1 February. These tariffs would rise to 25 per cent by June unless a deal for the "complete and total purchase" of Greenland is secured. Trump has refused to rule out forceful measures and shared supportive social media content.
The tariffs target nations involved in Arctic activities, pressuring them over the island. European leaders have rejected these threats, reaffirming solidarity with Denmark and defending sovereignty. Denmark and Greenland authorities have firmly opposed any sale.
European Military Build-Up in Greenland
Several countries have increased operations in the area independently of the French proposal. Denmark has deployed additional troops, while Sweden and Germany conduct reconnaissance missions and exercises. France joins this effort through its NATO call, aiming to demonstrate alliance commitment.
Greenland's Prime Minister stated the island must prepare for all possibilities, without excluding US military action. These moves underscore Europe's response to the shifting security dynamics. Analysts note the situation presents challenges for Denmark and Greenland.
Background on Greenland's Strategic Value
Greenland holds vast mineral resources and a key position in the Arctic. Its importance has grown with melting ice enabling new routes, heightening rival activities. President Trump has repeatedly insisted the US should control it for defence against Russia and China.
Denmark maintains sovereignty, with Greenland enjoying self-governance. Past purchase suggestions have faced outright rejection. The current escalation ties into broader trade and security frictions.
Reactions from Key Figures at Davos
Macron criticised tariff use as leverage against sovereignty, calling it unacceptable alongside new trade barriers. He advocated respect over bullying in international relations. Rutte stressed collective Arctic defence efforts.
Bessent's remarks highlighted Trump's focus on the issue during the forum. No immediate NATO response to the French proposal has been detailed beyond Rutte's comments.
European officials view retaliation options amid Trump's ultimatum. The developments occur as US aircraft deploy to Greenland. Germany seeks de-escalation.