Greenland crisis easing? Trump softens stance: Will reach a plan that makes NATO "very happy"

On Tuesday, at a White House briefing, U.S. President Trump did not rule out taking aggressive measures to control Greenland, but at the same time sent a clear signal of easing, hinting at a possible compromise that would make NATO "very happy."

According to a Wall Street Journal report on the 21st, Trump told reporters at the White House on Tuesday, "I think we will come up with a solution that makes NATO very happy and us very happy as well." When asked how far he was willing to go to acquire Greenland, he replied, "You'll see." This relatively conciliatory stance reflects some advisers' hopes to reach a compromise with Denmark, which controls this roughly 800,000-square-mile island, to ease tensions with European leaders.

According to CCTV reports, on the 17th local time, President Trump stated on his social media platform "Truth Social" that starting February 1, 2026, all goods exported to the U.S. from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would be subject to a 10% tariff. From June 1, 2026, the tariff rate will increase to 25%. He stated that these tariff measures would remain in place until an agreement is reached for the "complete and thorough purchase of Greenland."

European leaders have insisted for months that Greenland is "not for sale." With Trump's threats of tariffs, these leaders are making arrangements to meet with Trump and discuss the future of the region. Trump is set to arrive in Davos on Wednesday to hold meetings with multiple national leaders, expected to partly focus on the Greenland issue.

Pressure Strategy and European Concessions

According to the Wall Street Journal, Trump's strategy on the Greenland issue follows his usual negotiation playbook: make bold demands, threaten economic or military consequences, then wait for the opponent to compromise. This strategy has become central to his trade policy agenda.

Previously, as Denmark and European allies responded coolly to Trump’s interest in buying Greenland, and last week France, Germany, Norway, Sweden, the Netherlands, Finland, and the UK sent military and diplomatic personnel to Greenland in a show of solidarity, Trump interpreted these moves as direct threats. In retaliation, he announced that starting next month, the above countries would be subject to a 10% tariff, with the threat that the rate would rise to 25% in June.

This tough move forced European allies back to the negotiating table. Although European officials previously believed showing solidarity might prevent escalation, the result was counterproductive. Currently, European leaders are trying to avoid an all-out trade war through negotiations. National Economic Council Director Hassett commented that in negotiations with Trump, both sides often take extreme positions, but the ultimate goal is to strike a deal, saying, "Now is the time for cooler heads to prevail."

Market Reactions and Government Reassurance

Trump has closely monitored the market impact of his policy initiatives. On Tuesday, U.S. stocks suffered their worst single-day performance since last October, with the Dow Jones dropping 871 points, a decline of 1.8%; the dollar weakened; 10-year Treasury yields rose to their highest since August. Notably, in April of last year, Trump paused tariff measures after a market plunge.

Despite market volatility, White House spokesperson Kush Desai stated that the market still has confidence in the Trump administration’s policies, citing accelerated GDP growth, cooling inflation, and numerous historic trade agreements as evidence of the government bringing benefits to American workers and businesses.

Treasury Secretary Bessent, interviewed at the World Economic Forum in Davos, Switzerland, tried to calm the situation. He said, “Sit down, take a deep breath, … the president will be here tomorrow, and he will deliver his message.” This statement reflected that some advisers within the administration want to avoid a full-blown trade war with Europe and seek a compromise with Denmark.

Strategic Intentions and Davos Agenda

Trump is scheduled to arrive in Davos on Wednesday and is expected to outline his economic agenda, housing policy, and his national security goals for controlling the Western Hemisphere in his speech. According to senior administration officials, the Greenland issue will be one of the main topics during his meetings with world leaders, though so far, Denmark has not been scheduled to participate in these meetings.

Trump’s interest in Greenland dates back to his first term; he believes that acquiring the island is crucial to the strategically significant Arctic region. In addition, the island’s abundant mineral resources and its role as a key location for missile defense plans are also reasons why Trump insists on his proposal.

Although earlier discussions by Vice President Vance and Secretary of State Rubio with Danish and Greenland officials failed, and Trump's appointment of Louisiana Governor Jeff Landry as a Greenland envoy caught Denmark off guard, Trump’s statements on Tuesday implied room for negotiation. As he approaches the anniversary of the start of his second term, Trump faces almost no obstacles in decision-making, even joking at a Tuesday press conference, "My people won’t argue with me too much."

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