In case all the double downs, the resolution to consider military options, and the undermining of NATO wasn’t enough of a clue — Donald Trump wants you to know there is “no going back” on his Greenland plans.
Trump made this declaration during a press conference where he theatrically presented a dramatically thick book — which he claimed was full of his first year’s accomplishments — and then dropped it onto the floor. Much like last year’s tariff war, Trump has started the year off with even more geopolitical shifts. First by abducting the president of Venezuela for its oil, then by saying he has plans to invade Greenland, and now he’s not ruling out using military pressure on allies to get his way. According to the BBC, when Trump was asked how far he’s willing to go, the president responded, “You’ll see.”
Trump was due to appear at Davos, where he was expected to have a diplomatic showdown with European leaders — leaders he had just recently leaked texts from that were meant for private negotiations. Trump had a minor issue with Air Force One and was late to the World Economic Forum, but in his absence, world leaders made it very clear they plan on shifting strategy in dealings with the U.S. in a move that could upend America’s place in the global economy.
French President Emmanuel Macron didn’t take Trump’s latest bewildering threat — including a proposed 200% tariff on French wine — kindly. He took the Davos stage in aviator glasses, attributing them to recent eye surgery, and said he believes the era of viewing China solely as an adversary must end, and that Europe wants to accelerate its relationship with China.
The Canadian Prime Minister, Mark Carney, echoed similar thoughts, saying that the world’s economic structure has always been broken and that global leaders will no longer respect “an old order that is not coming back.” Trump’s tariffs and bizarre threats over annexing allies have left major Western powers with no realistic way to retaliate except by being offensive in a brewing trade war.
The EU, in particular, has been more assertive in its American economic relations since its inception. The economic bloc recently approved a deal to create an economic zone with Latin American countries that will open up a market of over 700 million people who will buy, sell, and — if they let China in — also innovate, while potentially bypassing the U.S. market entirely.
It doesn’t stop there. According to CBS, a major Danish pension fund has opted to sell its entire holdings of U.S. Treasuries — $100 million to be exact — citing concerns over U.S. government finances. The official reason given is “rooted in the poor U.S. government finances,” but the timing strongly suggests that Greenland and the tariff threats are a factor.
To make it simpler: if countries and major U.S. Treasury bond holders continue reducing their exposure, American interest rates will rise. That means mortgage rates, car loans, business loans, and credit card rates will climb too. But U.S. Treasury Secretary Scott Bessent tried to reassure Americans in a press conference, saying that Denmark is “irrelevant.”
Denmark is "irrelevant," US Treasury Secretary Scott Bessent tells reporters at Davos, as tensions over Greenland keep mounting https://t.co/erpVYJFF81 pic.twitter.com/xgMYAI3za7
— Bloomberg (@business) January 21, 2026
A trade war is brewing, and while the Trump administration is posturing to be as confident as ever, it remains to be seen whether that confidence was misguided.
Published: Jan 21, 2026 11:06 am