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Europe Is the U.S. Establishment’s Last Hope

Trump's Davos visit highlights tensions over Greenland and tariffs as nearly 400 global leaders gather; European Union warns of firm responses to US trade threats.

  • On January 21, 2026, U.S. President Donald Trump reached Davos after switching aircraft when Air Force One aborted its initial flight with a reported minor electrical issue, and he is scheduled to speak Wednesday and host a `Board of Peace` session.
  • Trump's renewed push for Greenland has heightened tensions with European partners, as he argues the island's strategic value for U.S. and NATO security against Russia and China fuels friction with seven allies.
  • Among attendees are top European leaders and senior members of the U.S. administration, including French President Emmanuel Macron, European Commission President Ursula von der Leyen, Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Special Envoy Steve Witkoff.
  • Markets reacted sharply, plunging Tuesday after Kaja Kallas warned `We have no interest in picking a fight, but we will hold our ground` and von der Leyen said Europe was fully prepared.
  • Longer-Term risks include a broader trade war and market disruption, as a trade war with the European Union could raise prices for American consumers and unsettle stock markets, with officials warning Europe will hold its ground.
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Moneycontrol broke the news in India on Wednesday, January 21, 2026.
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