Davos [Switzerland], January 20 (ANI): European Commission President Ursula von der Leyen on Tuesday cautioned the United States against imposing punitive tariffs on allied European countries in connection with Greenland, calling such a move a 'mistake'.

'The proposed additional tariffs are a mistake especially between long-standing allies,' von der Leyen told the gathering in Davos, Switzerland.

Underscoring the importance of credibility in transatlantic commitments, she said, 'The European Union and the United States have agreed to a trade deal last July. And in politics as in business - a deal is a deal. And when friends shake hands, it must mean something,' she said.

Von der Leyen also signalled that Europe would respond firmly to any further escalation linked to US President Donald Trump's repeated comments on Greenland and tariff threats, describing the response as 'unflinching'.

'Plunging us into a downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape. So our response will be unflinching, united and proportional,' von der Leyen said in her keynote speech in Davos.

At the same time, she indicated Europe's willingness to deepen cooperation, offering to work with the United States on Arctic security and announcing plans for increased European investment in Greenland following Trump's remarks about the autonomous Danish territory.

'We are working on a massive European investment surge in Greenland,' von der Leyen said.

'We will work with the United States and all partners on wider Arctic security. This is clearly in our shared interest,' she added.

Her remarks came amid growing European pushback to Trump's stated tariff plans tied to Greenland, with European Union leaders issuing warnings over the impact such measures could have on transatlantic ties.

The warning came after Trump said that starting February 1, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would face a 10 per cent tariff on all goods exported to the United States.

In a joint statement issued hours after Trump threatened tariffs of up to 25 per cent on multiple European nations, European Commission President Ursula von der Leyen and European Council President Antonio Costa said, 'Tariffs would undermine transatlantic relations and risk a dangerous downward spiral'.

'Europe will remain united, coordinated, and committed to upholding its sovereignty,' they added.

Reiterating support for Denmark and Greenland, the statement said, 'The EU stands in full solidarity with Denmark and the people of Greenland,' adding, 'Dialogue remains essential, and we are committed to building on the process begun already last week between the Kingdom of Denmark and the US.'

In Germany, senior European Parliament member Manfred Weber also cautioned that Trump's latest remarks could affect the EU-US trade deal agreed last year. Weber, who heads the European People's Party, the largest political group in the European Parliament, said, 'The EPP is in favour of the EU-U.S. trade deal, but given Donald Trump's threats regarding Greenland, approval is not possible at this stage'.

'The 0% tariffs on U.S. products must be put on hold,' he added.

Brussels and Washington reached a preliminary agreement in July that would place a 15 per cent US levy on most EU exports. However, as both sides continue to push for additional concessions, the future of the deal remains uncertain amid rising political tensions. (ANI)