European leaders lined up to condemn what they described as “new colonialism” by US President Donald Trump, warning that the continent is at a crossroads after he said there would be no retreat from his goal of taking control of Greenland.

After weeks of aggressive threats by Trump to seize the vast Arctic island — an autonomous territory within the Kingdom of Denmark — French President Emmanuel Macron said on Tuesday that he preferred “respect over bullying” and “the rule of law over brutality.”

Speaking at the World Economic Forum in Davos, Switzerland, Macron said the current moment was “not a time for new imperialism or new colonialism,” criticizing what he called “unproductive aggression” in Trump’s pledge to impose tariffs on countries opposing a US takeover of Greenland.

Macron added that the United States was seeking to “weaken and subjugate Europe” by demanding “maximum concessions” and imposing tariffs that are “fundamentally unacceptable — all the more so when used as leverage against territorial sovereignty,” as he appeared wearing sunglasses due to an eye condition.

Trump’s push to control Greenland has intensified in recent weeks, after he said the United States would take the Arctic island “one way or another,” adding: “Now is the time, and it will happen!!!” Trump is expected to visit Davos and deliver a speech on Wednesday.

European Commission President Ursula von der Leyen said Trump’s threat to impose 10% tariffs on imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland — unless those countries withdraw their objections — was “a mistake.”

She appeared to question Trump’s reliability, noting that the EU and the United States “agreed a trade deal last July, and in politics as in business, a deal is a deal. When friends shake hands, it should mean something.”

Von der Leyen added that Europeans “see the people of the United States not only as allies, but as friends,” warning against pushing relations into a “downward spiral,” while stressing that any EU response, if required, would be “firm, united, and proportionate.”

Belgian Prime Minister Bart De Wever said Europe was “at a crossroads,” arguing that “so many red lines are being crossed” by Trump that the continent must defend itself or “lose its dignity… the most precious thing any democracy can possess.”

“I want to emphasize that [the United States] is an ally — but they have to act like one,” De Wever said, adding that 80 years of Atlanticism may be nearing an end, as “a NATO member state is threatening another NATO member with military invasion.”

Trump wrote on social media on Tuesday that during a call with NATO Secretary General Mark Rutte, he had “made it very clear that Greenland is inevitable for national and global security. There is no backing away from that.”

Trump also posted an AI-generated image showing himself alongside Vice President JD Vance and Secretary of State Marco Rubio planting a US flag next to a sign reading: “Greenland, US Territory — Established 2026.” Another image depicted a map including Canada and Greenland as part of the United States.

In a separate post, Trump shared a message he said was from Macron, claiming the French president “doesn’t understand what you’re doing about Greenland.” Trump had previously threatened to impose 200% tariffs on French wine and champagne if Macron did not accept an invitation to join what Trump called a “Peace Council.”

The escalating dispute has thrown EU–US trade relations into fresh turmoil, forcing the bloc to consider retaliatory measures and threatening to unravel the transatlantic alliance within NATO that has underpinned Western security for decades.

Canadian Prime Minister Mark Carney, speaking after returning from a visit to Beijing to establish a new Canada–China partnership, said “middle powers” need to work together to build a better global order.

“We seem to be reminded every day that we are living in an era of great-power competition, and that the rules-based order is fading,” Carney said in a speech that drew warm applause in Davos.

He added that the world is facing “the end of a comforting illusion and the beginning of a harsh geopolitical reality,” noting that major powers are no longer constrained. “We know the old system will not return. We should not mourn it. Nostalgia is not a strategy.”

Trump is scheduled to attend the World Economic Forum alongside EU leaders who are considering retaliatory steps that could include a package of tariffs on US imports worth €93 billion ($100 billion), a package currently suspended for six months.

Another option under discussion is the EU’s Anti-Coercion Instrument (ACI), which has never been used and could restrict US access to public procurement, investment, banking activities, and trade in services, including digital services.

Senior members of the European Parliament’s International Trade Committee are expected on Wednesday to formally suspend ratification of the EU–US trade agreement signed in July, following an agreement among the largest political groups, according to a parliamentary source.

Danish Economy Minister Stephanie Lose said in Brussels: “This is not just an issue for the Kingdom of Denmark, but for the entire transatlantic relationship. At this stage, we do not believe any option should be ruled out.”

By contrast, US Treasury Secretary Scott Bessent said US–European relations remain strong, urging partners to “take a deep breath” and let tensions over Greenland “run their course.”

Bessent said a solution would be found and described “European hysteria” as unwarranted, adding: “It’s only been 48 hours. Relax. I’m confident leaders will not escalate this, and that it will end very well for everyone.”

Trump has shaken the EU and NATO by refusing to rule out the use of military force to seize Greenland — a strategically important, mineral-rich island protected by multiple NATO and EU arrangements due to Denmark’s membership in both.

Greenland’s Prime Minister Jens-Frederik Nielsen said in the capital Nuuk that military force was “unlikely,” but possible. “Greenland is part of NATO, and any escalation would have consequences for the outside world,” he said.

Danish Prime Minister Mette Frederiksen told parliament that “the worst may still lie ahead,” adding that Denmark “has never sought conflict, but has consistently sought cooperation.”

Trump has repeatedly argued that the United States needs to control Greenland for “national security” reasons, despite already operating a military base on the island and having a bilateral agreement with Denmark allowing a significant expansion of its presence.

Von der Leyen said the EU is working on an Arctic security package based on respect for Greenlandic and Danish sovereignty, a substantial increase in investment in Greenland, and cooperation with the United States in the region.

Danish public broadcaster TV2 Denmark reported that 58 Danish soldiers arrived in Greenland on Tuesday, joining around 60 troops previously deployed for a multinational military exercise known as Operation Arctic Endurance.

Swedish Defense Minister Pål Jonson said European leaders are considering establishing a more permanent military presence in the High North to help ensure Arctic security — a long-standing US request.

Separately, Ukrainian President Volodymyr Zelensky said he currently has no plans to travel to Davos, but may change course if his delegation and US officials make progress on peace efforts aimed at ending the war in Ukraine.

US stock indexes fell sharply during Tuesday’s trading — after markets reopened following Monday’s public holiday — amid rising anxiety over Greenland.

Investors shunned US risk assets such as equities, while long-dated US Treasury yields moved higher as demand increased for perceived safe havens.

The selloff comes amid mounting concerns over escalating trade tensions after US President Donald Trump expressed his desire to annex Greenland and threatened European countries opposing the move with steep tariffs.

Meanwhile, the corporate earnings season continues, with companies reporting results for the final quarter of 2025. Major firms set to release earnings this week include Netflix, Intel, and Johnson & Johnson.

In trading, the Dow Jones Industrial Average fell by 1.0%, or 506 points, to 48,853 by 15:54 GMT. The broader S&P 500 declined 1.21%, or 81 points, to 6,858, while the Nasdaq Composite dropped 1.51%, or 344 points, to 23,170.

Copper prices fell on Tuesday as industrial consumers began pushing back against elevated prices, while inventories climbed to their highest levels in several years.

Benchmark three-month copper on the London Metal Exchange slipped 0.8% to $12,868 per metric ton by 10:45 GMT, after rebounding 1.3% in the previous session.

Copper traded on the LME has surged by about 30% over the past six months, hitting a record high of $13,407 per ton last week, driven by speculative buying amid concerns that mine disruptions could lead to supply shortages.

Ole Hansen, Head of Commodity Strategy at Saxo Bank in Copenhagen, said: “Copper cannot ignore the fact that it is an industrial metal. Consumers have already started to resist these high price levels, at a time when exchange-monitored inventories have reached their highest level in eight years.”

He added that inventories in warehouses registered with the Shanghai Futures Exchange have more than doubled since December 1, reaching 213,515 metric tons, while stocks held at facilities linked to the US COMEX have jumped by 127% over the past six months to 542,914 short tons.

Hansen said: “Metals have seen very strong demand as physical assets amid all the uncertainty in the world, but ultimately gold currently remains the standout metal when it comes to its role as a safe haven.”

In this context, gold prices surged on Tuesday, breaking above the $4,700-per-ounce level for the first time ever, marking a fresh record high.

Lead was the biggest loser on the LME, falling 1.1% to $2,038 per ton after inventories rose by 11% in a single day, according to exchange data.

Nickel slipped 0.4% to $18,070 per ton, despite mining company PT Vale Indonesia saying that the mining production quota it received is unlikely to be sufficient to meet demand from smelters under its operating plans for this year.

Among other metals, aluminum fell 0.7% to $3,135.50 per ton, zinc declined 0.8% to $3,195.50, while tin jumped 2.7% to $50,600 per ton.

Bitcoin fell on Tuesday, extending its recent losses amid concerns over US demands related to Greenland, which pushed traders away from high-risk assets.

These developments have largely erased the recovery gains Bitcoin recorded in mid-January, pulling it back toward the lows seen at the start of the year, as investors favored physical assets and safe havens such as gold.

Bitcoin slipped 1.8% to $90,916.8 by 01:39 US Eastern Time (06:39 GMT).

Prices also came under additional pressure in recent sessions following the postponement of a closely watched US bill aimed at regulating cryptocurrencies. Lawmakers delayed discussions on the bill — which seeks to establish a regulatory framework for digital assets in the United States — after objections from Coinbase Global, listed on Nasdaq under the symbol (COIN), to several proposed provisions.

Trump says he will discuss Greenland in Davos

US President Donald Trump said late on Monday that he will discuss the Greenland issue during his participation in the World Economic Forum in Switzerland this week.

Trump did not specify which parties he would meet, while delegates from several major European countries are expected to attend the conference.

He also renewed calls for the United States to acquire Greenland, arguing that the island is important to US national security.

The US president’s threats to impose tariffs on eight European countries unless Greenland is handed over have weighed on global markets this week. Trump did not clarify on Monday whether he would consider deploying the US military to seize control of Greenland.

European leaders have widely rejected Trump’s demands and appear to be preparing retaliatory measures should the US president proceed with imposing tariffs.

Rising geopolitical tensions have dampened investor appetite for cryptocurrencies more broadly, as speculative assets typically underperform during periods of heightened uncertainty.

Broad liquidation of long positions in crypto markets

Long positions in Bitcoin and other cryptocurrencies continued to see widespread liquidations this week. Data from Coinglass showed liquidations totaling $260.32 million over the past 24 hours.

This follows nearly $900 million in liquidations across crypto markets earlier in the week.

Retail investor sentiment toward Bitcoin has remained weak, particularly in the United States. The Coinbase Bitcoin Premium Index indicates that the world’s largest cryptocurrency continues to trade at a discount in US markets compared with the global average, according to Coinglass data.

Cryptocurrency prices today: altcoins under pressure

Cryptocurrency prices fell broadly on Tuesday. Ether, the world’s second-largest cryptocurrency, dropped 2.2% to $3,126.01.

XRP and BNB declined by 0.6% and 1.1%, respectively. In contrast, Cardano rose 0.9%, while Solana fell 1.3%.

In the memecoin segment, Dogecoin edged up 0.1%, while the $TRUMP token gained 0.9% after having slipped below the $5 level earlier this week.