European Commission President Ursula von der Leyen criticized US President Donald Trump's tariff threats over Greenland as a mistake. Speaking at the World Economic Forum in Davos, she promised an unflinching, united, and proportional EU response. This sets the stage for renewed transatlantic trade tensions.

The dispute echoes Trump's earlier tariff battles with the EU, which previously targeted steel and aluminum. Markets typically react negatively to such uncertainty, fearing disrupted supply chains and higher costs for consumers. Investors watch for potential impacts on European exporters and US importers alike.

Von der Leyen's firm stance signals the EU will not be easily intimidated. The next steps involve potential WTO challenges and retaliatory measures. Business leaders must prepare for a volatile trade environment that could affect global investment decisions and corporate strategies.