Is the Greenland crisis easing? Trump states "softening": A plan will be reached that makes NATO "very happy."

U.S. President Donald Trump did not rule out the possibility of taking radical measures to control Greenland during a briefing at the White House on Tuesday, but he also sent clear signals of de-escalation, implying that a compromise solution that would make NATO "very happy" is likely to be reached. According to a report by The Wall Street Journal on the 21st, Trump stated to reporters at the White House on Tuesday, "I think we will reach a solution that makes NATO very happy and also makes us very happy." When asked how far he was willing to go to acquire Greenland, he replied, "You'll see." This relatively conciliatory statement reflects the hopes of some advisors to reach a compromise with Denmark, which controls the approximately 800,000 square mile island, in order to ease tensions with European leaders. According to CCTV reports, on the 17th local time, President Trump stated on his social media platform "Truth Social" that starting February 1, 2026, all goods exported to the U.S. from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will be subject to a 10% tariff. Starting June 1, 2026, the tariff rate will increase to 25%. He stated that this tariff measure will remain in effect until an agreement is reached for the "complete and total purchase of Greenland." European leaders have insisted for months that Greenland is "not for sale," and as Trump threatened tariffs, these leaders were arranging to meet with him to discuss the future of the region. Trump is scheduled to arrive in Davos on Wednesday to hold meetings with leaders from multiple countries, which are expected to partially focus on the Greenland issue. Pressure Strategy and European Concessions According to The Wall Street Journal, Trump's strategy on the Greenland issue follows his usual negotiation script: making bold demands, threatening economic or military consequences, and then waiting for the opponent to compromise. This strategy has become central to his trade policy agenda. Previously, due to Denmark and European allies' lukewarm response to Trump's desire to purchase Greenland, and last week when France, Germany, Norway, Sweden, the Netherlands, Finland, and the UK sent military and diplomatic personnel to Greenland to show solidarity, Trump interpreted this move as a direct threat. In retaliation, he announced that starting next month, he would impose a 10% tariff on the aforementioned countries and threatened to raise the rate to 25% in June. This hardline move forced European allies back to the negotiating table. Although European officials previously believed that showing solidarity could curb the escalation of the situation, the result was counterproductive. Currently, European leaders are trying to avoid a full-blown trade war through negotiations. National Economic Council Director Hassett commented that in negotiations with Trump, both sides often take extreme positions, but the ultimate goal is to reach a deal, "Now is the time for calm heads to prevail." Market Reaction and Government Reassurance Trump has been closely monitoring the impact of his policy measures on the market. On Tuesday, U.S. stocks experienced their worst single-day performance since last October, with the Dow Jones falling 871 points, a decline of 1.8%, the dollar weakened, and the yield on 10-year U.S. Treasury bonds rose to its highest level since August. Notably, Trump had previously suspended tariff measures last April due to a market crash Despite market turbulence, White House spokesperson Kush Desai stated that the market still has confidence in the Trump administration's policies, citing accelerated GDP growth, cooling inflation, and several historic trade agreements as evidence of the government's benefits to American workers and businesses. Treasury Secretary Mnuchin attempted to cool the situation during an interview at the World Economic Forum in Davos, Switzerland. He said, "Sit down, take a deep breath, ... the President will be here tomorrow, and he will convey his message." This statement reflects the desire of some advisors within the government to avoid a full-blown trade war with Europe and seek a compromise with Denmark. Strategic Intent and Davos Agenda Trump is scheduled to arrive in Davos on Wednesday, where he is expected to outline his economic agenda, housing policy, and national security goals for controlling the Western Hemisphere in his speech. According to senior government officials, the Greenland issue will be one of the focal points of his meetings with world leaders, although Denmark has not been scheduled to participate in these meetings so far. Trump's interest in Greenland dates back to his first term, as he believes acquiring the island is crucial for the strategically significant Arctic region. Additionally, the island's rich mineral reserves and its key location for missile defense plans are reasons why Trump insists on his claims. Despite previous discussions between Vice President Pence and Secretary of State Rubio with Danish and Greenlandic officials yielding no results, and Trump's appointment of Louisiana Governor Jeff Landry as a special envoy to Greenland catching Denmark off guard, Trump's statements on Tuesday hinted at the existence of negotiation space. As he approaches the one-year anniversary of his second term, Trump has faced little obstruction in decision-making, even joking at Tuesday's press conference that "my people won't push back too much."