The European Union’s top official says President Donald Trump’s threats of new tariffs over Greenland are “a mistake especially between long-standing allies,” and she’s calling into question Trump’s trustworthiness after he agreed last year not to impose more tariffs on EU countries.
European Commission President Ursula von der Leyen was responding Tuesday to Trump’s announcement of a 10% import tax will be imposed in February on goods from eight European nations
rallying around Denmark as he insists on a U.S. takeover of the semi-autonomous Danish territory of Greenland.
Treasury Secretary Scott Bessent urged America’s trading partners to “take a deep breath.” One year into his second term, Trump is attending the World Economic Forum in Davos — an annual gathering of the global elite — where amid the Europeans’ resistance he may see many of the billionaires he has surrounded himself with. Follow live updates from Davos.
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A ballooning Immigration and Customs Enforcement budget. Hiring bonuses of $50,000. Swelling ranks of ICE officers, to 22,000, in an expanding national force bigger than most police departments in America.
Trump promised the largest mass deportation operation in U.S. history, and the big tax and spending cuts bill passed by Republicans in Congress is now fueling unprecedented immigration enforcement actions in cities like Minneapolis and beyond.
As the president marks the first year of his second term, the immigration enforcement and removal operation that has been a cornerstone of his domestic and foreign policy agenda is rapidly transforming into something else — a national law enforcement presence with billions upon billions of dollars in new spending from U.S. taxpayers.
The Department of Homeland Security announced in December that it had arrested and deported about 600,000 people and that 1.9 million others had “voluntarily self-deported” since January 2025.
▶ Read more about Trump’s ICE force
Treasury Secretary Scott Bessent says world leaders should “have an open mind” about Trump’s plan to acquire Greenland.
“Greenland is becoming more and more attractive for foreign conquest” and the president “believes that it must be part of the United States to prevent a conflict,” Bessent said during a conversation with Fox News Channel’s Maria Bartiromo, Tuesday on the sidelines of Davos.
U.S. futures tumbled alongside global markets early Tuesday after Trump threatened to hit eight NATO members with new tariffs as tensions escalate over his attempts to assert American control over Greenland.
Futures for the S&P 500 sank 1.8% while futures for the Dow Jones Industrial Average dropped 1.6%, almost 600 points. The tech heavy Nasdaq slumped 1.8%.
Markets in Paris, Frankfurt and London all fell more than 1% and were on track for a second straight day of losses.
Silver and gold both rose to records again as investors sought safety amid heightened geopolitical tensions. Gold was up 3% at $4,733 an ounce while Silver jumped more than 7% to $95.30.
Wedbush Securities analyst Dan Ives predicts that tensions will ultimately calm down and that “just like over the last year the bark will be worse than the bite.”
▶ Read more about developments in financial markets
A startled British government on Tuesday defended its decision to hand sovereignty of the Chagos Islands to Mauritius, after Trump attacked the plan, which his administration had previously supported.
Trump said that relinquishing the remote Indian Ocean archipelago, home to a strategically important American naval and bomber base, was an act of stupidity that shows why he needs to take over Greenland.
The blast from Trump was a rebuff to efforts by Prime Minister Keir Starmer to calm tensions over Greenland and patch up a frayed trans-Atlantic relationship. Starmer on Monday called Trump’s statements about taking over Greenland “completely wrong,” but called for the rift to be “resolved through calm discussion.”
▶ Read more about Trump’s comments on the Chagos Islands
While Europe is pushing back publicly against Trump over Greenland, the language appears softer behind the scenes.
Trump published a text message on Tuesday that he received from French President Emmanuel Macron, confirmed as genuine by Macron’s office.
Starting with “My friend,” Macron’s tone was more deferential than the criticism that France and some of its European partner nations are openly voicing against Trump’s push to wrest Greenland from NATO ally Denmark.
Before broaching the Greenland dispute, Macron opted in his message to first talk about other issues where he and Trump seem to be roughly on the same page.
“We are totally in line on Syria. We can do great things on Iran,” the French leader wrote in English.
Then, he added: “I do not understand what you are doing on Greenland,” immediately followed by: “Let us try to build great things.”
That was the only mention that Macron made of the semi-autonomous Danish territory that Trump covets in the two sections of message that Trump published. It wasn’t immediately clear from Trump’s post when he received the message.
▶ Read more about the messages
Trump plans to use a key address Wednesday to try to convince Americans he can make housing more affordable, but he’s picked a strange backdrop for the speech: a Swiss mountain town where ski chalets for vacations cost a cool $4.4 million.
On the anniversary of his inauguration, Trump is flying to the World Economic Forum in Davos — an annual gathering of the global elite — where he may see many of the billionaires he has surrounded himself with during his first year back in the White House.
Trump had campaigned on lowering the cost of living. But in office, he has devoted more time to cavorting with the wealthy than talking directly to his working-class base.
Trump’s attention in his first year back has been less on pocketbook issues and more fixed on foreign policy with conflicts. He is now bent on acquiring Greenland to the chagrin of European allies — a headline likely to dominate his time in Davos, overshadowing his housing ideas.
▶ Read more about Trump at Davos
The European Union’s top official on Tuesday described Trump’s planned new tariffs over Greenland as “a mistake especially between long-standing allies” and called into question Trump’s trustworthiness, saying that he had agreed last year not to impose more tariffs on members of the bloc.
European Commission President Ursula von der Leyen was responding to Trump’s announcement that starting February, a 10% import tax will be imposed on goods from eight European nations that have rallied around Denmark in the wake of his escalating calls for the United States to take over the semi-autonomous Danish territory of Greenland.
“The European Union and the United States have agreed to a trade deal last July,” Von der Leyen said at the World Economic Forum in Davos, Switzerland. “And in politics as in business – a deal is a deal. And when friends shake hands, it must mean something.”
She vowed that the EU’s response “will be unflinching, united and proportional.”
Trump has insisted the U.S. needs the territory for security reasons against possible threats from China and Russia.
▶ Read more about von der Leyen’s comments
