The President’s escalating rhetoric about taking control of Greenland, and pressure on Denmark and the EU to cede the territory, create serious national security, economic, and legal risks. These actions threaten American business interests, alliances, and global stability, with no credible upside for U.S. interests.
Why this matters to business
This needless escalation is harming business interests.
Imposing blanket punitive tariffs that antagonize the U.S. closest treaty allies undermines trade, investment, and coordinated security. A trade war with Europe will penalize U.S. companies, markets, and tourism. Rising tensions raise risk premiums for businesses operating in transatlantic markets. There are indications that European banks, investors, and pension funds are already contemplating or taking action to reduce U.S. exposure.The administration’s tactics undermine the rule of law.
The President has no authority to seize foreign territory. Any action to occupy, acquire, or seize Greenland would require explicit Congressional authorization. For markets and allies alike, lawlessness translates into volatility and weakened confidence in U.S. governance.Alternative approaches could achieve all of the administration’s legitimate stated goals.
Greenland is an autonomous territory of Denmark, a NATO member and long-standing U.S. treaty ally. Under a decades-old agreement, the U.S. retains military access to Greenland, including the ability to build and operate military bases. Denmark has indicated willingness to accommodate U.S. military and security interests in relation to the territory. Every legitimate U.S. interest can be addressed through good-faith negotiation.This course will result in lasting geopolitical damage that undermines American competitiveness.
Threatening a NATO ally, putting the alliance itself at risk, and normalizing territorial threats will invite geopolitical Darwinism that undermines global order. That result will benefit authoritarian nations and will further erode a rules-based international system that favors the United States as a democracy based on the rule of law.
Strong nations do not need to threaten allies to secure their interests. The United States benefits from foreign policy grounded in law, alliances, and diplomacy not by undermining the very system that has kept America prosperous and secure.
This is escalation without strategy — and risk without reward.