In a fiery address that has further fueled Transatlantic tensions, Donald Trump lambasted the UK’s recent restrictions on North Sea oil and gas development, describing them as “catastrophic.” His remarks came during a rather disjointed speech at the Davos summit, where the former US President didn’t shy away from criticizing long-standing NATO allies.

Trump accused parts of Europe of becoming “unrecognizable” and suggested that, without America’s intervention in World War II, the audience at the Swiss resort might now be speaking German “with a bit of Japanese.” These comments were part of a broader critique aimed at European nations, underscoring his dissatisfaction with their current policies.

Amidst his critiques, Trump made a surprising concession regarding Greenland. He assured his audience that the US would not resort to military force to acquire the strategic island, offering a semblance of relief to international partners. He emphasized, “You can say yes and we’ll be grateful, or you can say no and we will remember,” indicating a diplomatic rather than militaristic approach to the situation.

Trump’s comments coincided with a sharp rebuke from Keir Starmer, who launched his most direct criticism of the former President to date. Starmer accused Trump of reneging on the Chagos deal, suggesting it was part of a broader strategy to pressure the UK into ceding to his ambitions regarding Danish territory.

During a tense session of Prime Minister’s Questions, Sir Keir asserted that Trump’s actions were explicitly aimed at forcing the UK to “yield” to his demands for Greenland. This accusation highlights the growing strain and complexity in US-UK relations as both sides navigate these contentious issues.

At a tense PMQs, Sir Keir said the US President had the ‘express’ intention of forcing the UK to ‘yield’ to his grab for Danish territory.

‘He wants me to yield on my position and I’m not going to do so,’ Sir Keir said. 

Transatlantic relations are heading for new lows amid the high-stakes wrangling between Nato allies, which has seen Mr Trump threaten to slap trade tariffs on those who reject his ambitions.

Sir Keir explicitly linked American anger over the Chagos Islands deal to the row over Greenland. 

He told the Commons Mr Trump’s condemnation of the handover to Mauritius was ‘different from his previous words’ – highlighting that the US administration warmly welcomed the agreement last year.

He said Mr Trump – who arrived in Davos this afternoon ready for a showdown with furious European leaders – had ‘the express purpose of putting pressure on me and Britain in relation to my values and principles on the future of Greenland’.

Donald Trump condemned the UK for failing to exploit energy resources as he gave a rambling speech at Davos

At a tense PMQs, Keir Starmer said the US President had the ‘express’ intention of forcing the UK to ‘yield’ to his grab for Danish territory

The government overturned efforts by peers to thwart the controversial plan to hand over the UK territory of the Chagos Islands to Mauritius and lease back Diego Garcia (pictured), which hosts a crucial US military base

Speaking at the World Economic Forum in Davos this morning, US Treasury Secretary Scott Bessent underlined the anger over the Chagos plan

Sir Keir told the House: ‘I have made my position clear on our principles and values.

‘The first of those is that the future of Greenland is for the people of Greenland and the Kingdom of Denmark alone.

‘The second is that threats of tariffs to pressurise allies are completely wrong.’

He said the Danish PM was coming to the UK tomorrow, adding: ‘I will not yield, Britain will not yield on our principles and values about the future of Greenland under threats of tariffs, and that is my clear position.’

However, Sir Keir played down the prospect of any trade retaliation against the US. 

He stressed that Transatlantic relationship ‘matters, especially on defence, security and intelligence, on nuclear capability, also on trade and prosperity’.

He reminded MPs that Russia is still ‘raining bombs’ on Ukraine, adding: ‘We have to work with our allies, including the US, on security guarantees, to make sure we can do what we must do in relation to Ukraine.

‘Now, that does not mean we agree with the US on everything… 

‘But it is foolhardy to think that we should rip up our relationship with the US, abandon Ukraine and stabilise all the things that are important to our defence, security and good.’

Last night the government pushed ahead with legislation to hand over the UK territory to Mauritius and lease back Diego Garcia – which hosts a crucial American military base.

The Commons wiped out amendments tabled by peers to the treaty, although three of Sir Keir’s own backbenchers voted with opposition parties.

Questions are mounting over whether the pact can go ahead in the face of condemnation from Mr Trump.

The US president threw Sir Keir into chaos again yesterday when he attacked the ‘stupid’ proposals yesterday, even though he and his administration had explicitly endorsed it in May.

Speaking at the World Economic Forum in Davos this morning, US Treasury Secretary Scott Bessent underlined the anger.

‘President Trump has made it clear that we will not outsource our national security or our hemispheric security to any other countries,’ he said.

‘Our partner in the UK is letting us down with the base on Diego Garcia, which we’ve shared together for many, many years, and they want to turn it over to Mauritius.’

Last February, Deputy PM David Lammy had said: ‘If President Trump doesn’t like the deal, the deal will not go forward and the reason for that is because we have a shared military and intelligence interest with the United States and of course they’ve got to be happy with the deal or there is no deal.’ 

Ministers have claimed the deal is necessary because international court rulings in favour of Mauritian claims to sovereignty had threatened the future of the base.

Western leaders have been decrying the pressure tactics intended to seize the territory of Nato ally Denmark.

But Mr Bessent decried Europe’s ‘anger’ and ‘bitterness’ over Trump’s tariff threats, urging members to ‘sit down and wait’ for the US President to arrive in Davos.

‘I will tell everyone: take a deep breath. Do not have this reflexive anger that we’ve seen and this bitterness,’ he said. 

‘Why don’t they sit down, wait for President Trump to get here and listen to his argument.’

Chancellor Rachel Reeves – also in Davos – said this morning that the UK is putting together a coalition of countries to fight for free trade.

She also insisted that the UK’s trade deal with America is still on track, despite Mr Bessent raising doubts about whether it will be honoured. 

‘Britain is not here to be buffeted around. We’ve got an economic plan, and it is the right one for our country,’ Ms Reeves told Sky News.

‘If other countries want to increase trade barriers, that is their choice, but we are determined to bring trade barriers down which is why this week I’m meeting with Europeans, Gulf partners, Canadians to talk about how we can free up trade and make it easier for businesses to trade around the world.

‘And on President Trump, we worked last year to get a trade deal. And as the US commerce secretary, Howard Lutnick said when I saw him yesterday, he doesn’t see any reason why that trade deal should be undone.’

Mr Trump wrote on his Truth Social platform yesterday: ‘Shockingly, our ‘brilliant’ NATO Ally, the United Kingdom, is currently planning to give away the Island of Diego Garcia, the site of a vital U.S. Military Base, to Mauritius, and to do so FOR NO REASON WHATSOEVER.

‘There is no doubt that China and Russia have noticed this act of total weakness.’

He highlighted the decision as a reason for his continued pursuit of Greenland, which is a semi-autonomous part of Denmark.

‘The UK giving away extremely important land is an act of GREAT STUPIDITY, and is another in a very long line of National Security reasons why Greenland has to be acquired.’

Mr Trump’s intervention caught No10 off guard as he had previously welcomed the agreement with Mauritius as a ‘monumental achievement’.

Foreign Office minister Stephen Doughty told MPs yesterday: ‘We will, of course, have discussions with the administration in the coming days to remind them of the strength of this deal and how it secures the base.’

The Prime Minister’s official spokesman said: ‘Our position hasn’t changed on Diego Garcia or the treaty that has been signed.

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

suffered a small rebellion in the Commons after it was urged to ‘pause’ a deal which would hand sovereignty of the Chagos Islands to Mauritius.

Labour MPs Graham Stringer, Peter Lamb and Bell Ribeiro-Addy rebelled against the Government as they voted in favour of changes to the Diego Garcia Military Base and British Indian Ocean Territory Bill tabled by peers.

The legislation is intended to provide a firm legal basis for the operation of the strategically important Diego Garcia facility.

An amendment proposing a referendum on the sovereignty of the Chagos Islands was ruled out by Speaker Sir Lindsay Hoyle because it would ‘impose a charge on public revenue’, which the Lords cannot do.

Mr Stringer concluded: ‘I don’t have the opportunity this afternoon to vote for what I would like to, but I will vote for the amendments that the Lords have put before us.’

Alongside Mr Lamb, Mr Stringer voted in support of an amendment which proposed to stop payments to the government of Mauritius ‘in the event that the use of the base for military purposes became impossible’.

Chancellor Rachel Reeves – also in Davos – said this morning that the UK is putting together a coalition of countries to fight for free trade

The bid was rejected overall by MPs, who voted 344 to 182, majority 162 to disagree with the amendment.

Mr Stringer and Mr Lamb, in addition to Ms Ribeiro-Addy voted in support of an amendment which required the cost of the treaty to be published by the Secretary of State.

That was rejected by MPs voting 347 to 185, majority 162, to disagree with the bid.

Mr Stringer and Mr Lamb also voted in support of a proposal to require the publication of the estimated expenditure of the deal within the first financial year of the Bill becoming law.

MPs voted 347 to 184, majority 163, against that.