First came the threat of punitive tariffs. Then they became Markets nervous about possible trade war. And in the end, US President Donald Trump backed down. What happened Wednesday at the World Economic Forum in Davos, Switzerland, was a prime example of the taco effect that has become famous over the past year.
But regardless of whether there is a taco effect or not, one thing is certain: the punitive tariffs of 10 percent announced by Trump against eight European countries, including Germany, will not come into force on February 1st. According to Trump, the reason for this is that he was able to agree on the outlines of an agreement with NATO boss Mark Rutte in the dispute over Greenland.
During a “very productive meeting with NATO Secretary General Mark Rutte, we laid the framework for a future agreement regarding Greenland and the entire Arctic region. This solution, if achieved, would be a major success for the United States of America and all NATO member states,” Trump said in a post on Truth Social hours after his speech at the World Economic Forum.
This means that the tariff risk is off the table for the time being, but the US President did not provide any details about the future agreement. Trump explained that further information will be published as discussions and negotiations continue. Also the Golden Dome missile defense system announced by Trump, based on this an Israels Iron Domeshould be discussed in the talks about Greenland.
“Neither Russia nor China”
A NATO press release also did not shed any more light on the matter. It only said that the concept announced by President Trump would be discussed within the alliance. The goal of NATO and, above all, of all seven member states bordering the Arctic is to “ensure that neither Russia nor China will ever gain a military or economic foothold in Greenland.”
In an interview with CNBC, Trump later explained that in addition to participation in the Golden Dome missile defense system, raw material extraction, especially rare earths, which are so important for the technology sector and the military, will also be part of the future agreement.
When asked how long this agreement would last, Trump said: “forever.”
Trump criticizes Europe harshly
For Trump and other world leaders, the World Economic Forum is an important place to hold talks, explore differences and make deals. The US President tried to appear diplomatic in his own special way. However, he made it clear again that Greenland had to become part of the USA. At the same time, he said that he would not use military measures to achieve this goal.
Despite his criticism of the policies of many European governments, Trump also repeatedly stated that how much he would value Europe. “I love Europe and I want Europe to do well, but it is not going in the right direction,” he said.
The strained transatlantic relations are unlikely to have suffered any further damage after Trump’s appearance in Switzerland. And if Trump’s willingness to negotiate on Greenland is actually the result of the taco effect – this stands for “Trump always chickens out” – then this can easily be seen as a success for Europe.
Meetings also planned with Ukraine’s Zelensky
Trump left it open when there would be further discussions about the future of Greenland. Opinions from the US Congress about Trump’s Greenland plans remain mixed. Republican Senator Thom Tillis stated that even a negotiated annexation of Greenland would not find support in Congress. His party colleague Lindsey Graham, however, was convinced by Trump’s speech.
“President Trump believes he needs control of Greenland so that he can make Greenland resilient, strengthen the common defense and protect the United States and NATO allies,” Graham wrote in a post on X. In it he also called Europeans “weak and humorless.”
On Thursday morning, Trump will attend a ceremony in Davos the Board of Peace that he initiated participate. The committee is supposed to lead the reconstruction of the Gaza Strip and later deal with other conflicts. A meeting with Ukrainian President Volodymyr Zelensky is also planned before returning to Washington.