In this episode of GZERO Europe, Carl Bildt examines how an eventful week in Davos further strained transatlantic relations and reignited tensions over Greenland.

President Trump arrived threatening new tariffs on Europe and pressing Denmark over Greenland. European leaders responded forcefully, arguing that the tariff threats would violate commitments made under the EU-US trade framework agreement in July. As Bildt notes, Europe made clear that the deal would be “dead in the water” if Washington followed through.

The confrontation quickly escalated and then abruptly cooled. Trump withdrew the tariff threats and agreed to renewed talks, but Bildt says it left lasting scars. “Substantial damage has been done to the transatlantic relationship,” he argues, adding that trust in US leadership has eroded.

More For You

President Donald Trump delivers remarks at the White House AI Summit at Andrew W. Mellon Auditorium in Washington, D.C., Wednesday, July 23, 2025.
Joyce N. Boghosian/White House/ZUMA Press Wire

The 2024 US presidential campaign season may have been the first time voters had to contend with AI during an election, confronting deepfakes of Taylor Swift vowing support for Donald Trump and AI robo-calls of Joe Biden telling voters not to cast their ballots.