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Trump’s Greenland Push at Davos Sparks Tariff Threats, NATO Tensions, and Market Reversal

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Trump publicly demands Greenland ownership while rejecting military force At the World Economic Forum in Davos on Jan 21, President Trump reiterated his bid to acquire Greenland and explicitly said he would not use force to annex the island [2]. He framed the demand as an economic and diplomatic initiative, pairing it with criticism of Europe and a promise of tariffs against countries that oppose the plan [2][3]. The statement provoked immediate diplomatic alarm, with European leaders preparing a coordinated response to protect NATO cohesion [2][3].

European leaders mobilize diplomatic effort to contain the crisis European officials convened behind the scenes at Davos to launch a joint diplomatic intervention aimed at defusing the Greenland dispute and preserving NATO unity [3][2]. France announced plans to participate in NATO drills in Greenland and warned that trampling international law would have consequences [2]. Sweden’s deputy prime minister cautioned that any rushed agreement could become a future headache, urging Trump to calm down [1].

Markets tumble then rebound after Trump’s tariff backtrack Initial reports of Trump’s tariff threats on eight European allies triggered a sharp dip in global stock indices [1]. Within hours, Trump reversed the tariff stance and praised an “infinite” framework that would involve extra NATO forces guarding the Arctic, prompting a rapid market recovery [1]. Analysts noted the volatility underscored the economic risk of presidential rhetoric tied to foreign policy [1].

Local opposition in Greenland intensifies amid US overtures Thousands of Greenlanders protested over the weekend, expressing strong resistance to any U.S. annexation attempt [2]. Trump’s later proposal of a private “Board of Peace” with a high joining fee, and the suggestion of inviting Russian President Putin, raised further concerns among allies and highlighted the disconnect between Washington’s plans and Greenlandic public sentiment [1]. The combination of public dissent and ambiguous diplomatic proposals left the island’s future status unresolved.

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