The Greenland shock: How Trump’s tariff threat to European allies rewrite the logic of alliance partner

President Trump's tariff threats over Greenland signal a shift in US economic power, undermining the credibility of trade agreements with Europe and other allies. Europe is urged to treat US trade commitments as contingent, activate deterrence tools, diversify trade partners, and redesign agreements to address non-trade retaliation risks. The episode highlights that US allies face unpredictable tariff risks, weakening trade agreements' stabilizing role and prompting global diversification away from US-centric trade.