President Donald Trump ruled out taking Greenland by force and pulling out of NATO in a stunning reversal after making major threats to get his hands on the Danish island territory. After making a long-winded argument at the World Economic Summit about why the Danish territory should be in U.S. hands, Trump made a pledge. ‘We probably won’t get anything unless I decide to use excessive strength and force, where we would be – frankly – unstoppable,’ Trump first said. ‘But I won’t do that. OK,’ he continued. ‘Now everyone says, “Oh, good.”‘ Stocks immediately bounced back up at the news that there would be no military intervention over Greenland, which could have led to a breakup of NATO.
Stocks Rebound After Trump’s Comments
The S&P500 and the tech-heavy Nasdaq rallied to more than 1 percent, with the Dowclose to hitting 1 percent after Trump’s main stage appearance wrapped. 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 the 79-year-old mistakenly called ‘Iceland’ on several occasions during his appearance in Davos, Switzerland. After a technical issue with Air Force One that forced the planes to be switched, Trump’s trip to Switzerland was several hours delayed – though he still made it in time to deliver his address.
Trump’s comments on no military intervention 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 floated to advisers in the past. Trump spent much of his speech slapping around European nations. He criticized them for their immigration policies and love of wind energy, among other things.
He even mocked the sunglasses being sported by French President Emmanuel Macron. But Trump remained committed to staying in the NATO alliance despite expressing some doubts about the alliance working both ways. ‘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.’ When Trump brought up Greenland during his speech, he did so almost teasingly. ‘Would you like me to say a few words about Greenland?’ Trump asked, knowing the topic was the elephant in the room.
Trump Says Greenland is a Core US Security Interest
The leaders of Denmark, a member of the NATO alliance, have repeatedly said they’re not interested in selling off Greenland, 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.
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.
