European countries are maintaining a state of vigilance even though U.S. President Donald Trump has withdrawn the tariff plan he had signaled to Europe in order to push his scheme to annex Greenland. Although an immediate clash that could have escalated into a ‘trade war’ has been avoided, assessments say that trust within the transatlantic alliance has already been damaged beyond repair.

Politico reported on the 21st (local time) that, after escalating his threats toward Europe for two weeks, President Trump appeared to step back, but European countries reacted skeptically. Because President Trump still has not backed down from his intention to annex Greenland, and because the fundamental unease over whether the United States can be regarded as a “reliable ally” remains unresolved, they said they cannot relax.

In his World Economic Forum speech in Davos, Switzerland, that day, President Trump continued with taunting attacks toward Europe, further heightening European unease. He called Denmark an “ungrateful country,” described Greenland as an “ice chunk,” and argued that the European Union (EU) “is not going in the right direction.” Regarding Canada, he also made a disparaging remark: “It exists thanks to the United States. It should thank us.”

According to the New York Times (NYT), many of the European political and economic elites in the audience were left speechless or sighed in shock, and some rose from their seats with pale faces when the speech ended. The NYT wrote, “President Trump turned the Davos forum, where politicians, businesspeople, and investors have gathered to discuss the shared political and economic future of the West, into a venue exposing a dramatic rift among Western allies,” adding, “The perception that a new world order is taking shape spread even on the Davos forum stage, which has long symbolized the established Western order.”

European leaders will proceed as scheduled with an EU emergency summit on the 22nd to discuss a joint response to the United States. While the urgent tariff issue has been resolved for now, Politico reported that issues EU leaders must seriously discuss remain, including the Greenland question and the transatlantic alliance. In parts of Europe, there are also calls for a hard-line response, warning that President Trump could change his stance again at any time.

Swedish Foreign Minister Maria Malmer Stenergard said the shift in President Trump’s stance was “the result of (European) allies cooperating,” and reiterated, “We will not yield to threats.” A European official attending the Davos forum told Politico, “The words and promises of President Trump are not trustworthy, but his contempt toward Europe is consistent,” adding, “Since we can no longer cling to the illusion that the United States is exactly what we thought it was, we will have to continue to show resolve and autonomy.”

Foreign media noted that President Trump abruptly changed his hard-line posture toward Europe just as global stock markets were plunging amid heightening tensions over Greenland. The NYT pointed out, “This is not the first time President Trump has stepped back from a tariff plan after a strong market reaction followed.”

Last April, immediately after announcing country-by-country ‘reciprocal tariffs,’ President Trump extended the tariff grace period when a sell-off in U.S. Treasuries hit financial markets, earning him the nickname ‘Taco (TACO·Trump Always Chickens Out).’ In his Davos speech that day, he also appeared mindful of market conditions, saying, “The stock market posted its first decline (of the new year) yesterday because of Iceland (misnaming Greenland).” After President Trump withdrew his Greenland tariff threat, the three major U.S. stock indexes rose in unison.