Trump-Greenland latest: Macron hits out at ‘bullies’ after US president’s fresh threats against European allies

The people paying for “nearly all” of US President Donald Trump’s tariffs are American consumers, according to a new report from a German analyst group.

A report, released on Monday by the Kiel Institute for the World Economy, determined that “foreign exporters did not meaningfully reduce their prices in response to US tariff increases”.

“The $200 billion surge in customs revenue represents $200 billion extracted from American businesses and households”, the report said.

The study determined that only approximately 4 per cent of the financial burden created by the tariffs is being paid by foreign operators. The other 96 per cent has effectively become “a consumption tax on Americans”, according to Kiel’s researchers.

Speaking in Davos today, Macron also urged a commitment to a stronger Europe in 2026.

He warned that the old continent does not have enough private investments, and suggested it needs Chinese backing in key sectors.

“Europe may be slow, but it is predictable and has rule of law, which is an advantage these days,” he said.

The French president was wary of a shift towards a world “without rules”, as he rallied against Donald Trump’s threats of tariffs against allies in a bid to shake support for Denmark over Greenland.

He said the choice was to “passively accept the law of the strongest”, which he said would lead to a “new colonial approach” – or to defend “effective multilateralism”.

Emmanuel Macron took a thinly-veiled swipe at Donald Trump over his claims to have ended eight wars during a speech at the World Economic Forum.

Speaking in Davos on Tuesday, the French president warned of an emerging world of instability, saying there were “more than 60 wars in 2024, an absolute record”.

“Even if I understand that a few of them were fixed,” he added, in apparent reference to Trump’s repeated claims to have ended a series of global conflicts as justification for why he ‘deserved’ the Nobel Peace Prize last year.

Macron told world leaders that the EU should not bend to the “law of the strongest” as Trump ramps up his threats against Denmark and allies over Denmark. “It doesn’t make sense to threaten allies with tariffs,” he added.

“The crazy thing is that we can be put in a situation where we will have to use the anti-coercion instrument towards the US,” he said, as the EU mulls how to respond to Trump’s threat of tariffs against nations backing Copenhagen.

Macron said that he does not plan to speak to Trump at Davos. The US leader earlier today shared a text from Macron suggesting a dinner and a meeting, with disagreement over Greenland still clearly felt.

The French president acknowledged that Nato was a “weakened institution” today, with partners divided over allied territory.

Republican Mike Johnson, the speaker of the US House of Representatives, did not mention Greenland as he gave a speech to MPs and peers to mark the 250th anniversary of American independence on Tuesday.

But he did not back away from the US’s stance either, encouraging the UK to work together with his country and warning a “strong” America was in everyone’s interest.

Although he said he wanted to “calm” waters, just a few hours after Trump launched a shock attack on Keir Starmer’s government, his words will be of little comfort to the prime minister.

Norway will not take part in U.S. President Donald Trump’s “Board of Peace” initiative the way the plan is currently presented, Norwegian Deputy Foreign Minister Andreas Motzfeldt Kravik told daily Aftenposten on Tuesday.

Downing Street has said the deal to hand over the Chagos Islands to Mauritius will still go ahead despite Donald Trump’s intervention.

The prime minister’s spokesperson insisted that the US still supported the deal despite the president’s social media rant.

“Our position hasn’t changed on Diego Garcia or the treaty that has been signed,” they said.

“The US supports the deal and the president explicitly recognised its strength last year.

“All our Five Eyes allies support it too and they all understand the national security capabilities the base provides.”

Donald Trump has announced plans to hit European nations, including the UK, with increasing tariffs if they continue to back Denmark over Greenland.

With Denmark and allies standing firm, Britain is set to be impacted by fresh 10 per cent tariffs on 1 February, rising to 25 per cent by June.

Rajan Lakhani, personal finance expert & Head of Money at smart money app Plum, said while businesses may have to swallow costs or raise prices to offset the levy, the biggest impact for UK consumers would be indirect.

“Tariffs tend to raise costs, and this could slow down further cuts to interest rates if inflation were to remain well above 2 per cent,” he said. “That would have a knock-on impact on mortgage holders. The general uncertainty will also likely mean the Bank of England may want to take a pause before acting.

“However, it’s worth reminding ourselves of the TACO moniker that was widely adopted last year – ‘Trump Always Chickens Out’ – after his proposed Liberation Day tariffs, which were soon reduced and shortened in scope after sending markets into a downward spiral.

“So there remains the possibility that such tariffs may not even go ahead.”

US Treasury Secretary Scott Bessent dismissed the possibility of the European Union using an anti-coercion instrument in the face of Trump’s threat to increase tariffs until the US is allowed to buy Greenland.

In an interview with CNBC, Bessent said he predicted the EU’s next move would be to form a working group. The EU’s never-used Anti-Coercion Instrument could limit access to public tenders, investments or banking activity or restrict trade in services.

Greenland’s prime minister Jens-Frederik Nielsen has said that while it remains unlikely that there will be a use of military force to take the territory, the prospect cannot be ruled out.

Nielsen and his finance minister Mute Egede are holding a press conference about the “current situation”, as the United States refuses to rule out military intervention.

Last year, Sir Keir agreed a deal to hand over the Chagos Islands to Mauritius, while retaining control of the UK-US military base on Diego Garcia.

Now, Donald Trump has called the UK government’s plan an act of “great stupidity” – citing it as a reason behind his desire to take over Greenland.