The annual World Economic Forum meeting in Davos continues to deliver significant diplomatic and economic developments, with today’s focus centering on a surprising shift in U.S. policy regarding Greenland and a robust speech from German Chancellor Friedrich Merz. Following reports of potential tariffs, President Trump has reportedly reversed course on a bid for Greenland, a move which prompted a swift response and exhibition of unity from European leaders. The unfolding situation highlights shifting global power dynamics and the renewed importance of transatlantic relations, as detailed in reporting from Davos.
News from Davos is coming in rapidly: Chancellor Merz has urged attendees to keep the “big picture” in mind during his address. He also welcomed a shift in course from Donald Trump regarding Greenland.
A surprising reversal from Donald Trump on the Greenland issue emerged from Davos, prompting speculation about the reasons behind the move. According to reports, the U.S. President retracted previously threatened tariffs against countries like Germany as a result.
Bild reports a “unprecedented power play” by Europe against the United States. The publication states, citing government sources, that the swift and decisive response from the EU prompted Trump to reconsider. European leaders reportedly held an emergency meeting of the European Council to discuss potential counter-tariffs, led by Berlin. The outcome: had Trump implemented his tariff threats, Europe would have immediately responded with “retaliatory tariffs” on goods like whiskey and soybeans.
Trump reportedly appeared impressed by the plan for a strong response and the unity displayed by the EU. Concerns about the U.S. domestic market also played a role in his decision, as a new price spiral within the country could have created political difficulties for the President.
Update, January 23, 06:42 AM: Donald Trump’s change of heart regarding Greenland came as a surprise during the Davos summit.
Update, 8:28 PM: Following the tentative resolution of the dispute with the U.S. over Greenland, European heads of state and government expressed relief while also urging continued vigilance. German Chancellor Friedrich Merz described the outcome of talks with U.S. President Donald Trump in Davos the previous day as a “good result.” French President Emmanuel Macron cautioned that despite the “more acceptable” situation, it was important to “remain vigilant.”
Merz and Macron praised the European unity demonstrated throughout the situation. “It has shown that cohesion and determination on the European side can achieve something,” Merz said. Macron argued that when Europe reacts with unity, “it can earn respect.”
EU Foreign Affairs Chief Sees Damaged Relations Between EU and U.S.
Table of Contents
- EU Foreign Affairs Chief Sees Damaged Relations Between EU and U.S.
- Trump reaches for Greenland: The dispute over the Arctic island in pictures
- Klingbeil Emphasizes Future Cooperation with the U.S.
- Selenskyjs Speech at the World Economic Forum in Davos: “Without the U.S. There Are No Security Guarantees”
- Selenskyj Live in Davos – Trump Leaves the World Economic Forum
- Denmark on Negotiations Between Trump and Rutte Regarding Greenland
- Reactions to Merz Speech in Davos: Chancellor Has “Declared a Second Paradigm Shift”
- Merz in Davos: Chancellor Announces “High-Tech Agenda” for Germany
- Merz Responds to Trump
Update, 7:39 PM: According to EU Foreign Affairs Chief Kaja Kallas, relations between the EU and the U.S. have suffered a serious blow. Before the EU emergency summit in Brussels, Kallas said: “Disagreements between allies like Europe and America only benefit our adversaries, who watch and enjoy the prospect.”
Update, 7:02 PM: In the wake of developments surrounding Greenland, Danish Prime Minister Mette Frederiksen is calling for an increased NATO presence in the Arctic. “We need a permanent NATO presence in the Arctic, including around Greenland,” she said before an EU emergency summit in Brussels. She added that joint cooperation with the U.S. in the Arctic could be discussed.
Klingbeil Emphasizes Future Cooperation with the U.S.
Update, 5:59 PM: Despite Donald Trump’s tariff threats in the dispute over Greenland, Germany wants to continue working closely with the U.S. “It’s not about breaking with the Americans, dissolving the relationship,” said Finance Minister Lars Klingbeil (SPD) to journalists on the sidelines of the economic conference in Davos. He added that it was good that there would be no military force used to acquire Greenland. “We can talk about everything else,” Klingbeil said.
Update, 5:08 PM: Foreign Minister Johann Wadephul welcomed U.S. President Donald Trump’s reversal of plans to take over the Danish island of Greenland. “I now rely on the Kingdom of Denmark, Greenland and the United States to quickly and effectively negotiate the details,” said the CDU politician during a meeting with his Ethiopian counterpart Gedion Timothewos in the capital Addis Ababa. “The solution that has now been found for the Greenland issue is exactly the one that the federal government has been advocating from the beginning,” Wadephul said.
Selenskyjs Speech at the World Economic Forum in Davos: “Without the U.S. There Are No Security Guarantees”
Update, 4:30 PM: Finnish President Alexander Stubb is urging a swift plan to strengthen security in the Arctic region. He told the Reuters news agency that the plan should be in place by the upcoming NATO summit in Ankara in July.
Update, 3:49 PM: That concludes Ukrainian President Volodymyr Zelenskyy’s speech. The Ukrainian President warned European states against relying too heavily on the U.S., particularly in matters of security. Europe must be able to defend itself, Zelenskyy said. “The right words are being found in Europe, but they are not being followed by corresponding actions,” he added.
Following a meeting with Donald Trump in Davos, Zelenskyy emphasized that his country needs security guarantees not only from Europe after a possible ceasefire with Russia: “Without the U.S., there are no security guarantees.” He described his meeting with Trump as “very good,” and the U.S. President called the conversation “good,” telling Russian President Vladimir Putin that “the war must end.”
Selenskyj Live in Davos – Trump Leaves the World Economic Forum
Update, 3:05 PM: The Ukrainian President’s speech is expected to begin shortly. U.S. President Donald Trump has left Davos and is on his way to the airport in Zurich.
Update, 2:34 PM: According to the Ukrainian President’s office, the meeting between Donald Trump and Volodymyr Zelenskyy has begun. Zelenskyy is scheduled to deliver a speech at the World Economic Forum in Davos at 3:30 PM.
Update, 12:52 PM: According to NATO chief Mark Rutte, NATO countries must strengthen the defense of the Arctic region. This is part of the framework agreement he negotiated with U.S. President Donald Trump on Wednesday, Reuters reports. “We will sit down with our high-ranking commanders in NATO to discuss what is needed,” Rutte said to Reuters. He added, “I have no doubt that we can do that quickly. I would definitely like to see it by 2026, hopefully even earlier in 2026.”
Denmark on Negotiations Between Trump and Rutte Regarding Greenland
Update, 12:20 PM: Danish Defense Minister Troels Lund Poulsen has rejected the idea of sole negotiations between NATO Secretary-General Mark Rutte and the U.S. regarding Greenland. Rutte cannot negotiate on behalf of Denmark, Poulsen stated on X. Rutte is, however, “loyally” working to maintain the unity of the military alliance.
“We have a clear red line,” Poulsen added, referring to the negotiations announced by Rutte and U.S. President Donald Trump. “We will not relinquish sovereignty over parts of the Kingdom.”
Denmark is also contradicting reports about details of the framework agreement between Rutte and Trump. The New York Times reported, citing government officials, that Denmark could transfer sovereignty over small areas of Greenland to the U.S., where the U.S. could then establish military bases.
Update, 12:00 PM: Only a day after his surprising reversal in the Greenland dispute, another diplomatic bombshell from U.S. President Trump is emerging. His newly formed “Peace Council” is meeting with skepticism.
Reactions to Merz Speech in Davos: Chancellor Has “Declared a Second Paradigm Shift”
Update, 11:10 AM: In an initial reaction to Merz’s speech, Dirk Jandura called for an adjustment to the coalition agreement. “Chancellor Merz has effectively declared a second paradigm shift in his speech at the World Economic Forum in Davos,” said the President of the Federation of German Wholesale, Foreign Trade and Services (BGA) in a statement. “Parts of the current coalition agreement are no longer up to date in light of the new global situation.” Now, all signals must be set for growth.
Update, 10:25 AM: Drawing on the speech by Canadian Mark Carney on Tuesday, Merz concluded his speech with an appeal to Davos to keep the “big picture” in mind. “The world around us is changing at an unprecedented pace. The direction it is taking should worry us. A world of great powers is a new reality. Europe has understood the message. Germany has understood the message. We must and will meet this challenge.” He then made it clear that a “historic task awaits politics: “Our fate is in our hands. It is in our responsibility and in our freedom to shape it. This historic task lies before us. Germany wants to play a key role in mastering it.”
Merz in Davos: Chancellor Announces “High-Tech Agenda” for Germany
Update, 10:02 AM: In terms of new technology, Merz announced a “High-Tech Agenda” for Germany. He wants to become a more innovative AI location and invited international investors. “My government will do its homework,” the Chancellor promised. He called on his audience to remain calm and not be confused by the headlines.
Update, 9:55 AM: Midway through his speech, the Chancellor switched from English to German. He expressed his support for a revival of transatlantic relations “despite all the frustration of the past few weeks.” “Even the U.S. will depend on this,” Merz said. “Autocracies may have subjects. Democracies have partners and reliable friends.”
Update, 9:50 AM: The Greenland crisis quickly became a topic of Merz’s speech. He said they took Trump’s demands very seriously. He affirmed that they stood in solidarity with Denmark. At the same time, the Chancellor promised greater German involvement within NATO. “We will protect Greenland from the threat from Russia,” the Chancellor said. He also welcomed Trump’s remarks and called for negotiations between Denmark, the EU and the U.S.
Merz Responds to Trump
Update, 9:43 AM: Friedrich Merz spoke of a “new era that has already begun.” Signs of this include the Ukraine War, the great power ambitions of the People’s Republic of China, and the radical change in U.S. foreign policy under Donald Trump. “We have entered a time of great power politics,” Merz said. A “new world of great powers” is emerging, built on “power, strength and violence.” Merz made it clear: “It is not a pleasant place.”
Update, 9:39 AM: Slightly delayed, Friedrich Merz rises from his seat on stage in Davos. The eagerly awaited speech by the Chancellor begins.
