President Donald Trump arrived at the World Economic Forum
in Davos today (Wednesday) as renewed tariff threats tied to his push to
acquire Greenland unsettled markets and strained trade relations.
US equities rebounded the same day after the steepest
selloff in months. Investors assessed Trump’s remarks in Davos for signals on
the Greenland dispute.
Trump Proposes Talks, Keeps Tariff Pressure
In a keynote address, Trump said he wanted “immediate
negotiations” over Greenland. He also said he would not use force to acquire
the Danish territory.
“You can say yes, and we will be very appreciative, or you
can say no, and we will remember,” he said. Trump dismissed the idea of global economic decoupling. He
described the United States as the central driver of global markets. “You all follow us down, and you follow us up,” he said.
Trump is scheduled to meet European leaders who have
criticized his bid to take over Greenland. Over the weekend, he said the United
States would impose 10% tariffs on eight European countries he accused of
blocking a US purchase of the territory. He said the tariffs would rise to 25%
on June 1 if no agreement is reached, according to Yahoo Finance.
The measures are set to begin on February 1. They would
apply to “any and all goods sent to” the United States.
Trump has also threatened 200% tariffs on French wine and
champagne. The warning came after French President Emmanuel Macron rejected
Trump’s call to join a peace initiative.
HAPPENING NOW: President Donald J. Trump delivers a special address to the World Economic Forum in Davos.”The United States is in the midst of the fastest and most dramatic economic turnaround in country’s history.” 🇺🇸 pic.twitter.com/3kBZHW6bIY
— The White House (@WhiteHouse) January 21, 2026
Treasury, Supreme Court Address Tariff Uncertainty
European Union capitals have started discussions on possible
retaliatory tariffs. The measures could reach up to $108 billion on US
products. Trump said the Greenland dispute would not cause the EU to reconsider
its trade agreement with the United States or its pledged investments.
US Treasury Secretary Scott Bessent addressed reports that
Denmark had sold US Treasurys. A Danish pension operator sold about $100
million, citing concerns over US finances. “They’ve been selling Treasurys for years, I’m not concerned
at all,” Bessent said.
Meanwhile, the US Supreme Court has not issued a ruling this
year on the legality and scope of Trump’s global tariffs. The court declined to
rule on Tuesday. The timing of its next decision remains unclear.
Stocks Rise Despite Tariff, EU Warnings
Markets showed modest gains. The Dow Jones Industrial
Average, S&P 500, and Nasdaq Composite each rose about 0.6%. The rebound
followed Trump’s call for “immediate negotiations” and his statement that he
would not use force. Tariff threats and EU warnings of retaliation continued to
weigh on trade expectations.
In corporate trading, Netflix shares fell after earnings.
Investors also prepared for results from Johnson & Johnson, Charles Schwab,
and other financial firms.
This article was written by Tareq Sikder at www.financemagnates.com.
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