Trump Holds White House Press Conference
"Many Greenland Meetings at Davos... Things Will Go Quite Well"
On January 20 (local time), President Donald Trump of the United States stated that even if the United States imposes tariffs on European countries that oppose the U.S. plan to annex Greenland, these countries are unlikely to withdraw their investment commitments to the U.S. Speaking at the World Economic Forum (WEF) in Davos, Switzerland, he said, "Things will work out quite well," suggesting the possibility that the U.S. and Europe, currently locked in a standoff, may seek a diplomatic solution.
At a press conference marking his first year in office held at the White House, President Trump was asked whether Europe might reconsider its investment plans in the U.S. if the U.S. imposes tariffs on the European Union (EU) over the Greenland issue. He replied, "I doubt it." He added, "They need the agreement very much. It was a hard-fought deal," indicating that he believes Europe would find it difficult to take a hardline response.
Previously, President Trump announced that the U.S. would impose a 10% tariff starting next month, and a 25% tariff from June 1, on eight European countries, including Denmark, that oppose the U.S. annexation of Greenland. In response, the EU has warned of countermeasures, including the possible activation of the Anti-Coercion Instrument (ACI), also known as the "trade bazooka," to respond to third countries that economically threaten member states. Denmark, which governs Greenland as an autonomous territory, announced that its pension fund would sell off all of its U.S. Treasury holdings, worth 100 million dollars, by the end of this month.
When asked how far he would be willing to go to secure Greenland, President Trump avoided a direct answer, saying, "You will find out soon." While some Trump administration officials have previously mentioned military options, most observers believe these are unlikely to be implemented, leaving room for further action by President Trump regarding the level of response.
Regarding concerns that it may become difficult to impose tariffs related to Greenland if the U.S. Supreme Court rules against reciprocal tariffs based on the International Emergency Economic Powers Act (IEEPA), President Trump said, "We can use other means, such as licenses." He added, "The way we are doing things now is the best-it's the strongest, fastest, easiest, and least complicated."
However, President Trump dismissed concerns about a rift in the Atlantic alliance over the Greenland issue. He emphasized, "We can come up with a solution that will make NATO very happy, and us as well," adding, "This is necessary and very important not only for national security but also for global security." He also noted, "There are many meetings scheduled at the Davos Forum regarding Greenland," and predicted, "Things will work out quite well."
As a result, attention is focusing on the possibility that the U.S. and the EU may seek a diplomatic solution. During the Davos Forum, which runs until the 23rd, there is hope that President Trump and EU leaders may meet directly and find a breakthrough to ease tensions. President Trump is attending the forum with the largest-ever U.S. delegation.
Trump administration officials are also mentioning the possibility of easing tensions. Howard Lutnick, U.S. Secretary of Commerce, warned at the Davos Forum that if Europe retaliates against the U.S. with trade measures, it could lead to a "tit-for-tat" escalation of tariffs. However, he also cited last year's precedent, when the U.S. and EU reached an agreement after a trade dispute, and said, "In the end, it will be resolved in a reasonable manner."
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