President Donald Trump arrived at the World Economic Forum on Wednesday to meet with European leaders furious over his campaign to acquire Greenland, declining to specify how far he would go to seize the Danish territory while market turmoil from the dispute intensified.
Trump told reporters Tuesday he has scheduled multiple Greenland meetings in Davos and predicted “things are going to work out pretty well.” When asked how far he would pursue the acquisition, Trump responded, “You’ll find out.”
The president’s aggressive stance triggered financial fallout as Danish pension fund AkademikerPension announced on Tuesday it would sell $100 million in US Treasuries by month’s end. While the fund cited poor US government finances, investment director Anders Schelde acknowledged Trump’s threats “didn’t make it more difficult to take the decision.”
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Treasury Secretary Scott Bessent dismissed the sale as irrelevant, telling reporters Wednesday that “Denmark’s investment in US Treasury bonds, like Denmark itself, is irrelevant.”
Markets plunged Tuesday in the worst session since October. The S&P 500 fell 2.1%, the Dow Jones Industrial Average dropped 1.76% and the Nasdaq Composite lost 2.39%. The dollar tumbled while gold surged to record highs as investors fled US assets.
Trump threatened Saturday to impose 10% tariffs starting February 1 on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland unless the US acquires Greenland. The tariffs would rise to 25% by June 1. All eight countries are NATO members.
European Commission President Ursula von der Leyen warned Tuesday the bloc’s response would be “unflinching, united and proportional” if Trump proceeds. She noted the US and EU reached a trade framework last year and emphasized that “a deal is a deal.”
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The eight targeted nations issued a joint statement Sunday condemning the tariffs as undermining transatlantic relations and risking a “dangerous downward spiral.” They expressed full solidarity with Denmark and Greenland while affirming commitment to Arctic security through NATO.
Greenland Prime Minister Jens-Frederik Nielsen said late Tuesday the island must prepare for “everything,” declining to rule out US military action. He announced the formation of an emergency response team and warned that the situation could escalate to something worse.
Trump shared private messages Tuesday from French President Emmanuel Macron and NATO Secretary-General Mark Rutte on Truth Social. Macron wrote “I do not understand what you are doing on Greenland,” while Rutte said he remained “committed to finding a way forward” on the dispute.
The president also linked his Greenland push to not receiving the Nobel Peace Prize, telling Norwegian Prime Minister Jonas Gahr Støre in a message that circulated among European officials, he no longer felt “an obligation to think purely of Peace.”
Greenland, a self-governing territory of Denmark, has repeatedly stated it is not for sale. Recent polling shows 85% of Greenlanders oppose joining the United States.
Denmark declined to send government representatives to Davos as the crisis intensified, according to a World Economic Forum spokesperson. European Union ambassadors scheduled an emergency meeting on Thursday to discuss potential responses, including activation of anti-coercion mechanisms targeting US technology companies operating in Europe.
Trump’s journey to Switzerland was briefly delayed Tuesday evening when Air Force One returned to Joint Base Andrews due to what White House press secretary Karoline Leavitt called a “minor electrical issue.” Trump boarded another aircraft to complete the trip.
The president had originally planned to use his Davos appearance to address housing affordability and cost-of-living concerns facing American voters. White House officials promoted the forum as an opportunity to rekindle populist support, though the Greenland dispute now dominates the agenda.
European leaders have warned that any US military action against Greenland would end NATO, which operates on the principle that an attack on one member constitutes an attack on all. Trump refused to rule out using force, stating only that people would “find out” his strategy.
Ray Dalio, founder of Bridgewater Associates, warned Tuesday at Davos that the escalating conflict could trigger what he termed capital wars, with countries potentially dumping US assets as trust erodes. Europe collectively holds approximately 40% of foreign US Treasury holdings.
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