US President Donald Trump has reversed his position on annexing Greenland. He announced that he will not use force or impose 10% tariffs on the eight European nations that were most vocal in their opposition to his actions. Instead, Trump is entering into negotiations to acquire Greenland, which he described as merely “a piece of ice.”
He had encountered significantly more opposition than expected. French President Emmanuel Macron declared the threatened tariffs “unacceptable,” while Swedish Prime Minister Ulf Kristersson called them “blackmail,” adding that “only Denmark and Greenland decide on issues concerning Denmark and Greenland.” German President Frank-Walter Steinmeier went further, accusing Trump of turning the world “into a den of robbers, where the most unscrupulous take whatever they want.”
While not mentioning the United States by name, Prime Minister Mark Carney compared living under ‘American hegemony’ to the story of a greengrocer in Czechoslovakia’s former Communist regime.
“Every morning, this shopkeeper places a sign in his window: ‘Workers of the world, unite!’ He doesn’t believe it. No one does. But he places the sign anyway to avoid trouble, to signal compliance, to get along. And because every shopkeeper on every street does the same, the system persists,” Carney said, noting it was time for Canada and similar nations to take the sign down.
“This fiction was useful. American hegemony, in particular, helped provide public goods: open sea lanes, a stable financial system, collective security, and support for frameworks for resolving disputes. So, we placed the sign in the window. We participated in the rituals. And we largely avoided calling out the gaps between rhetoric and reality. This bargain no longer works.”
Carney argued that over the past two decades, a series of crises have shown the risks of extreme global integration. “More recently, great powers have begun using economic integration as weapons. Tariffs as leverage. Financial infrastructure as coercion. Supply chains as vulnerabilities to be exploited. You cannot ‘live within the lie’ of mutual benefit through integration when integration becomes the source of your subordination.”
Canada and many other nations realize they must develop their own energy, food supplies, critical minerals, finances, and supply chains. “But let’s be clear-eyed about where this leads,” Carney warned. “A world of fortresses will be poorer, more fragile, and less sustainable. If we’re not at the table, we’re on the menu.”
Carney concluded by saying, “Canada is a pluralistic society that works. Our public square is loud, diverse, and free. Canadians remain committed to sustainability. We are a stable and reliable partner in a world that is anything but. A partner that builds and values relationships for the long term. And we have something else. We have a recognition of what’s happening and a determination to act accordingly.”
He added, “We understand that this rupture calls for more than adaptation. It calls for honesty about the world as it is. We are taking the sign out of the window. We know the old order is not coming back. We shouldn’t mourn it. Nostalgia is not a strategy. But we believe that from the fracture, we can build something better, stronger, more just.”
Concurrently, a symbolic military exercise took place in Greenland. A few dozen troops and security officers from several European nations took part in Operation Arctic Endurance. The largest contingents were 15 personnel from France and 13 from Germany. The United Kingdom and the Netherlands sent a single security officer each, while Norway and Finland sent two personnel, and Sweden sent three.
The CBC recently reported that a Royal Canadian Air Force contingent is taking part in a pre-planned NORAD exercise in Greenland, and Carney considered sending additional forces to take part in the Danish-led exercise.
This sparked criticism from Aaron Gunn, the MP for North Island-Powell River, who suggested, “Before sending troops to Greenland, Canada should probably deploy its military to our own Arctic first. We currently have 300 permanently based there. Russia and the U.S. have more than 30,000 each!”
Conservative Leader Pierre Poilievre tweeted, “Canada should strengthen the NATO alliance and rebuild our own forces in the Arctic to combat threats also coming from China and Russia and to protect our seas, skies, and soil.” However, Poilievre also wrote, “It is unacceptable for the U.S. to seize the territory of a sovereign country, including by threatening tariffs on other NATO countries. Greenland is part of the Kingdom of Denmark and we support its territorial integrity.”
Trump commented on the military exercise through social media, “Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland have journeyed to Greenland, for purposes unknown. This is a very dangerous situation for the Safety, Security, and Survival of our Planet. These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable.”
Many believe it was the reaction in world markets that caused Trump to crumble. The European parliament formally suspended the ratification process on a $109 billion American trade deal. US markets were closed Monday in observance of Martin Luther King Jr. Day, but the Dow tumbled 871 points (1.76%) Tuesday in response to Trump’s threats to impose a 10% tariff on eight European nations. The tech-heavy Nasdaq fell 2.39% and the S&P 500 fell 2.06%. The US dollar index fell 0.8%.
Krishna Guha, head of global policy and central banking strategy at Evercore ISI, declared, “The fact that the dollar is falling while the euro is rising on the crisis says global investors at the margin are looking to reduce or hedge their exposure to a volatile and unreliable US. What remains to be determined is the magnitude and duration of these dynamics.”
Greg Valliere, Chief U.S. Policy Strategist at AGF Investments, declared, “Trump encountered an angry stock market, and the threat of a tariff war forced him to capitulate. An important lesson for all of us in Trump’s final three years as president — he caves or changes the narrative when the markets revolt. Washington breathed a sigh of relief last night — especially Republicans in Congress who dread an ugly election this fall. The mood was dramatically different in Canada. Carney’s masterful speech made it clear that Greenland has prevailed-Trump’s vague ‘concept’ of a deal will stall. Trump rejected violence because 90 percent of Americans thought it was a terrible idea.”
In a speech before the World Economic Forum in Davos, Switzerland, Trump warned, “The USA is the economic engine on the planet. When America booms, the entire world booms. It’s been the history. When it goes bad, you all follow us down.”
As for the situation in Greenland, the US President said, “All we want from Denmark, for national and international security, and to keep our very energetic and dangerous potential enemies at bay, is this land on which we’re going to build the greatest golden dome ever built. We’re building a golden dome that’s going to, just by its very nature, going to be defending Canada.”
“Canada gets a lot of freebies from us, by the way. They should be grateful also, but they’re not. I watched your Prime Minister yesterday, he wasn’t so grateful. They should be grateful to us, Canada. Canada lives because of the United States. Remember that Mark, the next time you make your statements.”
Links of Interest:
- Transcript of Prime Minister Mark Carney’s speech at the World Economic Forum in Davos, Switzerland
- Transcript of President Donald’s speech at the World Economic Forum
- Articles about, or mentioning, Donald Trump
Top image credit: President Trump boarding presidential jet – Photo by the White House (Public Domain)
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