Overview
- President Trump is heading to Davos after threatening 10% tariffs from Feb. 1 on several European allies over opposition to U.S. control of Greenland, with rates indicated to rise to 25% in June.
- European Commission President Ursula von der Leyen and France’s Emmanuel Macron rejected the Greenland push, pledging a united, proportional response and flagging use of the EU anti‑coercion toolkit.
- The IMF warned in Davos that a tit‑for‑tat tariff cycle would materially harm global growth, investment and confidence.
- The Greenland dispute prompted the postponement of a planned $800 billion U.S.–EU–Ukraine reconstruction agreement, and Ukrainian President Volodymyr Zelenskiy canceled his Davos visit.
- Trump is promoting a new U.S.-led “Council of Peace,” with invitations reported to dozens of countries, and Argentina’s Javier Milei is scheduled to sign on according to his government’s agenda.