Overview
- Paul Krugman writes that Trump withdrew new tariff threats after Davos talks yielded a vague framework that offered the United States no clear new benefits.
- He says European governments displayed rare cohesion by sending forces to Greenland under an effort described as Operation Arctic Endurance.
- Krugman reports that Europe readied retaliation against U.S. businesses after Trump threatened tariffs on countries that deployed troops to Greenland.
- He argues claims of European economic collapse are exaggerated, noting real wages have recovered and have broadly kept pace with U.S. gains over time.
- The economist adds that Trump remains confrontational domestically, citing a lawsuit against JPMorgan and a threat to sue the New York Times.