Donald Trump has ruled out seizing Greenland by military force but has called for urgent talks to regain the island after days of escalating tensions that have roiled transatlantic relations and jittered markets.
The US president’s comments, in a lengthy and sometimes rambling address to the World Economic Forum in Davos on Wednesday, came after he issued threats to Denmark and other NATO allies, ranging from a military occupation of an Arctic island to hefty new tariffs.
“People thought I would use force. I don’t want to use force. I don’t want to use force. I will not use force,” Trump said in the Davos speech, which kept the pressure on Europe to comply. He later said that military action was “not on the table”.
The US President said he was “demanding immediate negotiations” to discuss the acquisition of Greenland from Denmark, “just as we have acquired so many other territories throughout our history”.
Danish Foreign Minister Lars Løkke Rasmussen welcomed Trump’s statement “positively”, but added that “this does not end the matter”.
Later during a meeting with NATO Secretary General Mark Rutte, Trump said he could see a fair price emerging for the purchase of Greenland.
The US president said nothing in his Davos address about additional 10 percent tariffs on goods from Denmark and seven other European countries, which he vowed to impose on Feb. 1 unless they agree to cede the Arctic region, an autonomous Danish territory.
Denmark and Greenland have repeatedly stressed that the islands are not for sale since Trump first expressed interest in 2019.
Trump said Europeans had a choice instead over Greenland: “You can say yes and we’ll appreciate it very much, or you can say no and we’ll remember.”
He said that the “vast unprotected island” was part of North America and a US takeover should not be seen as a threat to NATO.
His threats over Greenland and belligerence toward America’s allies prompted a selloff of American assets earlier in the week. Following his comments denying the use of force, markets recouped some heavy losses.
The S&P 500 rose 0.4 percent in New York in early afternoon trading, while the tech-heavy Nasdaq Composite was up 0.1 percent. The Stoxx Europe 600 closed unchanged, reversing previous losses.
Trump appeared to acknowledge the negative market reaction to transatlantic tensions during his speech.
Confusing Greenland and Iceland, he said: “Iceland caused the first drop in our stock market yesterday, so Iceland has already cost us a lot of money.”
But he said the reversal was “peanuts” compared to previous gains and that the stock market had an “incredible future.”
The US president also used his speech to scold an “unrecognizable” Europe that is being weakened by economic decline and unlimited immigration. “I love Europe… but it’s not going in the right direction,” he said.
Trump’s forceful actions against Denmark and its European partners have angered European officials, with many claiming they have destroyed trust in transatlantic relations.
US Trade Representative Jamieson Greer attacked the EU for finding “excuses” to suspend its trade deal with the US, after the European Parliament suspended ratification of the agreement over Trump’s additional tariff threat.
