President Donald Trump has stepped back from his provocative stance on acquiring Greenland and withdrawing from NATO, surprising many with this abrupt change in approach. Previously, he had made significant threats to claim the Danish island territory.
During a detailed presentation at the World Economic Summit, Trump laid out his reasons for wanting the Danish island under U.S. control. Yet, in a turnaround, he committed to a different strategy.
“We probably won’t achieve anything unless I choose to use overwhelming strength and force, where we would be – frankly – unstoppable,” Trump initially stated.
However, he quickly assured, “But I won’t do that. OK,” adding humorously, “Now everyone says, ‘Oh, good.’”
The announcement that military action over Greenland was off the table reassured investors, leading to a resurgence in stock markets, stabilizing fears of a NATO rift.
The Dow and S&P 500 each rose by 0.7%, while the Nasdaq, heavily weighted with tech stocks, climbed by 0.6%. In response, Treasury yields dipped, and the dollar strengthened against other currencies.
They had fallen Tuesday after Trump threatened to impose tariffs on eight European allies to get his way on Greenland.
Tariffs appeared to still be on the table, as Trump demanded an ‘immediate negotiation’ over the island, which he mistakenly called Iceland on several occasions.
President Donald Trump pledged not to take Greenland, a Danish territory, by force
Trump’s comments came after the president wouldn’t reveal to reporters on Tuesday his red line, answering only ‘you’ll find out’ when asked how far he would go to acquire Greenland.
He previously hadn’t ruled out military action.
There were also fears that Trump could pull the plug on U.S. NATO membership, something the Republican president has floated in the past.
While he slapped around European nations – over their immigration policies and love of wind energy, among other things – Trump remained committed to staying in the alliance.
‘The problem with NATO is this: we’d be there for them 100 percent,’ Trump pledged. ‘I’m not sure they’d be there for us if we made the call.’
The leaders of Denmark, a member of the NATO alliance, have repeatedly said they’re not interested in selling off the large island territory, which Trump argued Wednesday was part of the U.S.’s purview, due to it being located in North America.
‘This enormous unsecured island is actually part of North America, on the northern frontier of the western hemisphere. That’s our territory,’ the president said. ‘It is therefore a core national security interest of the United States of America.’
Trump said that American presidents, for two centuries, have been trying to acquire the island.
‘They should have kept it after World War II, but they had a different president,’ he said. ‘That’s all right. People think differently,’ Trump shrugged.
Snow-covered houses line a hillside in Nuuk, Greenland, the territory’s capital
Danish soldiers are photographed during a shooting practice on Greenland on Sunday amid President Donald Trump’s threats to take over the island
The president then knocked Denmark for not spending enough to bolster Greenland’s defenses, as the president has pushed that it’s under threat from both Russia and China.
‘There’s no sign of Denmark there. And I say that with great respect for Denmark, whose people I love, whose leaders are very good,’ Trump said.
‘It’s the United States alone that can protect this giant mass of land, this giant piece of ice, develop it and improve it and make it so that it’s good for Europe and safe for Europe and good for us,’ he continued.
‘And that’s why I’m seeking immediate negotiations to once again discuss the acquisition of Greenland by the United States,’ he added.
Trump said he wanted ‘full ownership’ of Greenland – and not just the current deal in which the Danes allow for a U.S. military presence – because the U.S. needs to be fully invested in it.
‘All we’re asking for is to get Greenland, including the right title and ownership, because you need the ownership to defend it. You can’t defend it on a lease,’ the president argued. ‘Who the hell wants to defend a license agreement?’ he mused.
