DAVOS, Switzerland — U.S. President Donald Trump on Tuesday said he would not use military force to acquire Greenland, but declared the Arctic island “our territory” during a keynote address at the World Economic Forum, a stance that has intensified diplomatic friction with European allies, particularly NATO partner Denmark.
Speaking before an audience of global business leaders and heads of state in the Swiss Alps, Trump emphasized U.S. economic performance while criticizing Europe’s trajectory. His remarks on Greenland, however, dominated reactions across the forum.
“This enormous unsecured island is actually part of North America,” Trump said. “That’s our territory.”
Trump argued that U.S. leadership drives global growth, adding, “When America booms the whole world booms,” and, “You all follow us down and you follow us up.” He dismissed European opposition to his position on Greenland, suggesting Washington was best placed to control the strategically important territory.
The president’s arrival in Davos was briefly delayed after a minor electrical issue aboard Air Force One forced the aircraft to return to Washington and switch planes. The delay did not affect his scheduled appearance.
Diplomatic Tensions and Tariff Threats
Trump’s comments come amid heightened tensions with European leaders following his threat to impose steep tariffs on Denmark and seven other U.S. allies unless they negotiate a transfer of Greenland’s semi-autonomous status. He said the proposed tariffs would begin at 10% next month and rise to 25% by June, a move economists warn could increase costs and slow economic growth.
European Commission President Ursula von der Leyen warned that any such action would prompt a firm response from the bloc.
“The European Union and the United States have agreed to a trade deal last July,” von der Leyen said in Davos. “And in politics as in business — a deal is a deal. And when friends shake hands, it must mean something.”
French President Emmanuel Macron, addressing the forum earlier, cautioned against what he described as a growing climate of instability in global security and economics, urging leaders to reject “the law of the strongest.”
In London, British Prime Minister Keir Starmer also took a firm line, saying, “Britain will not yield on our principles and values about the future of Greenland under threats of tariffs, and that is my clear position.”
Market Reaction and Domestic Agenda
U.S. financial markets reacted sharply to the escalating rhetoric. The S&P 500 fell 2.1%, its steepest decline since October, while the Dow Jones Industrial Average dropped 1.8% and the Nasdaq composite slid 2.4%.
Despite the foreign policy focus, Trump said he planned to use the Davos platform to highlight domestic priorities, including efforts to address housing affordability and inflation. U.S. home sales are at a 30-year low, with elevated mortgage rates and high prices keeping many buyers out of the market.
Trump has proposed purchasing $200 billion in mortgage securities to help lower borrowing costs and has called for restrictions on large financial firms buying residential properties.
Scott Lincicome, vice president for economic issues at the Cato Institute, warned that renewed trade disputes could undermine investor confidence and worsen affordability pressures. “Significantly undermining investors’ confidence in the U.S. economy in the longer term would likely increase interest rates and thus make homes less affordable,” he said.
“Board of Peace” Initiative
Foreign policy is expected to remain central to Trump’s Davos agenda. A White House official, speaking on condition of anonymity, said the president plans to unveil details of a proposed “Board of Peace” on Thursday, an initiative intended to oversee the U.S.-brokered ceasefire in Israel’s war with Hamas. The body could potentially take on a broader mandate, positioning itself alongside or in competition with international institutions.
Trump is also scheduled to hold around five bilateral meetings with foreign leaders during the two-day forum. More than 60 heads of state are attending the event, and approximately 30 countries are expected to join the proposed board.
As Trump concluded his address, he acknowledged the significance of the gathering, calling it “an interesting trip,” one that has already underscored the growing strain between Washington and its traditional allies.
