Donald Trump sparked controversy when he linked his failure to win the Nobel Peace Prize to his desire to take over Greenland.
He claimed that Denmark was unable to protect the strategic island from threats from Russia and China, thus insisting that the US needed to control it for the sake of 'world security'.
Trump also suggested that Britain's decision to hand over the Chagos Islands to Mauritius was among the reasons he wanted to control Greenland.
In a message to the Prime Minister of Norway, Trump insinuated that he no longer had to think too much about peace after not being awarded the Nobel, despite claiming to have helped stop eight wars.
More shockingly, Trump also threatened to impose a 10 percent tariff on goods from eight European countries including Denmark, Germany, France and the United Kingdom from February 1.
The threat immediately sparked investor concern, causing European and global stock markets to slide earlier in the week.
This aggressive move put European countries in a dilemma: fight Trump firmly or risk the wrath of the US president who is known for his erratic attitude.
The European Union (EU) has now been forced to hold an emergency summit, while stressing the priority of negotiations but ready to respond if pressure continues.
Analysts warn that the Greenland dispute is not just a territorial issue, but has the potential to undermine the NATO alliance that has been the backbone of Western security for decades.
In the context of the ongoing war in Ukraine, the new tensions add pressure to transatlantic relations.
