US President Donald Trump said he is dropping his threat to impose tariffs on several European countries, citing what he described as a new framework with NATO on Arctic security.
The abrupt about-face comes shortly after he told the World Economic Forum in Davos that the US would not use force to pursue control of Greenland.
In his earlier speech, Trump reaffirmed his ambition to secure “right, title and ownership” of Greenland and urged NATO allies not to stand in the way, warning that refusals would carry consequences for the alliance.
Trump's address at the annual meeting of the elite in Switzerland tried to focus on his efforts to tame inflation and spur the economy back home. But his more than 70-minute address focused more on his gripes with other countries.
European Commission President Ursula von der Leyen yesterday called Trump’s planned new tariffs on eight EU countries over Greenland a “mistake” and questioned Trump’s trustworthiness.
French President Emmanuel Macron said the EU could retaliate by deploying one of its most powerful economic tools, known colloquially as a trade “bazooka".
Earlier, Trump insisted that he wants to “get Greenland, including right, title and ownership,” but said he would not use force to do so while repeatedly deriding European allies and vowing that NATO should not try to block US expansionism.
In an extraordinary speech at the World Economic Forum, the president said he was asking for territory that was "cold and poorly located.” He said the US had effectively saved Europe during World War II and even declared of NATO: “It’s a very small ask compared to what we have given them for many, many decades.”
The implications of his remarks were nonetheless enormous, potentially rupturing an alliance that has held firm since the dawn of the Cold War and seemed among the globe's most unshakable pacts.
NATO was founded by leading European nations, the US and Canada. Its other members have been steadfast in saying Greenland is not for sale and cannot be wrested from Denmark. That means the Davos meeting could be just the beginning of a larger standoff that may eventually reshape geopolitics worldwide.
A Danish government official told The Associated Press after Trump's speech that Copenhagen is ready to discuss US security concerns in the Arctic. But the official, who was not authorised to comment publicly and spoke on condition of anonymity, underscored the government’s position that “red lines”— namely Denmark’s sovereignty — must be respected.
Trump urged Denmark and the rest of NATO to stand aside, adding an ominous warning.
“We want a piece of ice for world protection, and they won’t give it,” Trump said. “You can say yes, and we will be very appreciative. Or you can say no, and we will remember.”
Despite that, he also acknowledged: “We probably won’t get anything unless I decide to use excessive strength and force where we would be frankly unstoppable. But I won’t do that, OK?”
“I don’t have to use force,” he said. "I don’t want to use force. I won’t use force.”
Instead, he called for opening “immediate negotiations” for the US to acquire Greenland.
“This enormous unsecured island is actually part of North America,” Trump said. “That’s our territory.”
Trump suggests Europe is fizzling while US booms
The president has spent weeks saying that the US will get control of Greenland no matter what it takes, arguing that Washington should be in charge there to counter threats in the surrounding Arctic sea by Russia and China. His Davos remarks articulated what that push for control might entail more clearly than before, however.
Danish Foreign Minister Lars Løkke Rasmussen said he was encouraged by Trump's comment about not using US military force but called other parts of the speech “a way of thinking about territorial integrity that does not match the institutions we have.”
“Greenland is part of NATO. Denmark is part of NATO, and we can exercise our sovereignty in Greenland,” Løkke Rasmussen said.
In his remarks, Trump also argued that the US is booming and its economy is strong, in sharp contrast to Europe.
“I want to see Europe go good, but it’s not heading in the right direction,” said Trump, who also noted, “We want strong allies, not seriously weakened ones." He said of European economies, “You all follow us down, and you follow us up.”
Trump turned the Davos gathering upside-down even before he got there.
His arrival was delayed after a minor electrical problem on Air Force One forced a return to Washington to switch aircraft. As Trump’s motorcade headed down a narrow road to the speech site, onlookers — including some skiers — lined the route. Some made obscene gestures, and one held up a paper cursing the president.
Billionaires and top executives nonetheless sought seats inside the forum’s Congress Hall, which had a capacity of around 1000, for Trump's keynote address. When he began, it was standing room only. Attendees used headsets to listen in six languages besides English, and the reaction was mostly polite applause.
More than 60 other heads of state are attending the forum. After the speech, Trump met with the leaders of Poland, Belgium and Egypt and again repeated that the US. would not be invading Greenland.
“Military is not on the table. I don’t think it will be necessary,” Trump said, suggesting that the parties involved would use better judgement.
Tariff threat looms large
Potentially deepening the crisis were Trump's threats to impose steep US import taxes on Denmark and seven other allies unless they negotiate a transfer of the semi-autonomous territory — some European say they won't do.
Trump said the tariffs would start at 10% next month and climb to 25% in June.
The president in a text message that circulated among European officials this week linked his aggressive stance on Greenland to last year’s decision not to award him the Nobel Peace Prize. In the message, he told Norway’s prime minister, Jonas Gahr Støre, that he no longer felt “an obligation to think purely of Peace.”
Even before his speech, Trump's Greenland ambitions were rankling Europe.
British Prime Minister Keir Starmer vowed during his weekly questioning in the House of Commons, “Britain will not yield on our principles and values about the future of Greenland under threats of tariffs, and that is my clear position.”
French President Emmanuel Macron, in his address to the forum, urged rejecting acceptance of “the law of the strongest." European Commission President Ursula von der Leyen warned that should Trump move forward with the tariffs, the bloc's response “will be unflinching, united and proportional."
The US stock market, meanwhile, recovered from its worst day since October, as Trump’s talk of Greenland-related tariffs spooked investors.
Trump's housing plan overshadowed
The White House had insisted Trump would focus his Davos address on how to lower housing prices in the US. That was part of a larger effort to bring down the cost of living, which continues to rise and threatens to become a major liability for the White House and Republicans ahead of November’s midterm elections.
Greenland instead carried the day, with Trump lashing at Denmark for being “ungrateful” for the US protection of the Arctic island during the World War II. He also mistakenly referred to Iceland, mixing up that country with Greenland four times during his speech and for the fifth time since Tuesday.
When he finally did mention housing in his speech, Trump suggested he did not support a measure to encourage affordability. He said bringing down rising home prices hurts property values and makes homeowners who once felt wealthy because of the equity in their houses feel poorer.
Meanwhile, experts and economists are warning that Trump’s Greenland tariff threat could disrupt the US economy if it blows up the trade truce reached last summer between the US and the EU.
Promoting the ‘Board of Peace’
Tomorrow, Trump plans to attend an event focused on the "Board of Peace,” meant to oversee a US-brokered ceasefire in the Israel-Hamas war in Gaza. It could possibly take on a broader mandate, potentially rivaling the United Nations. Some European nations have so far been non-committal about participating.
“You know, the United Nations should be doing this,” Trump said of his efforts to halt the fighting in Gaza and other conflicts around the world.
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