U.S. President Donald Trump said on Tuesday there was “no going back” on his goal to control Greenland, refusing to rule out taking the Arctic island by force and rounding on allies as European leaders struggled to respond.

Trump’s ambition — spelled out in social media posts and mock-up AI images — to wrest sovereignty over Greenland from fellow NATO member Denmark has threatened to blow apart the alliance that has underpinned Western security for decades.

It has also threatened to reignite a trade war with Europe that rattled markets and companies for months last year, though Trump’s Treasury Secretary Scott Bessent pushed back against what he called “hysteria” over Greenland.

“As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back — On that, everyone agrees!” Trump said after speaking to NATO Secretary General Mark Rutte.

To drive home the message, Trump posted an AI image of himself in Greenland, holding a U.S. flag. Another showed him speaking to leaders next to a map showing Canada and Greenland as part of the United States.

Separately, he leaked messages including from French President Emmanuel Macron, who questioned what Trump was “doing on Greenland”. Trump, who has vowed to impose tariffs on countries that stood in his way, had earlier threatened to hammer French wines and champagnes with a 200% tariff.

BESSENT PUSHES BACK AGAINST ‘HYSTERIA’

The European Union has threatened to hit back with trade measures. One option is a package of tariffs on 93 billion euros ($109 billion) of U.S. imports that could automatically kick in on February 6 after a six-month suspension.

Another option is the “Anti-Coercion Instrument” (ACI), which has never yet been used. It could limit access to public tenders, investments or banking activity, or restrict trade in services, the sector in which the U.S. has a surplus with the bloc, including the lucrative digital services provided by U.S. tech giants.

Denmark’s Prime Minister Mette Frederiksen told parliament in Copenhagen on Tuesday that “the worst may still lie ahead”.

“We can negotiate about everything political, including security, investments and the economy, but we cannot negotiate our most fundamental values: sovereignty, our country’s identity, our borders, our democracy,” Frederiksen said.

European Commission President Ursula von der Leyen, speaking at the annual World Economic Forum in Davos, Switzerland, which Trump is also due to attend this week, sought to rally leaders around building a “new independent Europe”.

“The seismic change we are going through today is an opportunity, in fact, a necessity to build a new form of European independence,” she said.

“We will only be able to capitalise on this opportunity if we recognise that this change is permanent,” she added.

Bessent, also speaking at the Davos gathering of the world’s political and business elite, said a solution would be found that ensures national security for the United States and Europe.

“It’s been 48 hours. As I said, sit back, relax,” he said. “I am confident that the leaders will not escalate and that this will work out in a manner that ends up in a very good place for all.”

Asked about the prospect of a prolonged trade war between the United States and Europe, Bessent replied: “Why are we jumping there? Why are you taking it to the worst case?… Calm down the hysteria. Take a deep breath.”

RUSSIA QUESTIONS DANISH SOVEREIGNTY OVER GREENLAND

Protesters marched in Zurich, Switzerland, late on Monday, carrying a giant banner saying: “TRUMP NOT WELCOME. NO WEF! NO OLIGARCHY! NO IMPERIALIST WARS!”, Swiss newspaper NZZ reported.

The foreign minister of Russia, which has been watching with glee as Trump’s drive to acquire Greenland widens splits with Europe, said that “Greenland is not a natural part of Denmark” and also denied that Moscow had any designs on the island.

“It was neither a natural part of Norway nor a natural part of Denmark,” Sergei Lavrov told reporters in Moscow. “It is a colonial conquest. The fact that the inhabitants are now accustomed to it and feel comfortable is another matter.”

Trump’s renewed tariff threats against European allies have revived talk of the ‘Sell America’ trade that emerged in the aftermath of his sweeping levies last April.

S&P 500 and Nasdaq futures sank to one-month lows on Tuesday, as U.S. traders returned from a long weekend to witness a rout in global markets.

In a sign of global risk aversion, gold prices touched record highs, stocks across the world slid, and U.S. Treasuries were sold off.