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Tag: Tariffs

  • Consumers and businesses paid nearly 90% of Trump tariffs in 2025, new analysis found

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    Almost all of President Trump’s tariffs last year were passed on to U.S. consumers and businesses in the form of higher costs, according to a new analysis from the Federal Reserve Bank of New York.

    As the average U.S. tariff on imports jumped to 13% in 2025, up from less than 3%, “nearly 90% of the tariffs’ economic burden fell on U.S. firms and consumers,” the researchers wrote.

    Who bears the burden of tariffs?

    The Trump administration maintains that foreign companies and other exporters pay the lion’s share of tariffs. 

    In a Jan. 30 Wall Street Journal op-ed defending his tariff agenda, for example, Mr. Trump said that “data shows that the burden, or ‘incidence,’ of the tariffs has fallen overwhelmingly on foreign producers and middlemen, including large corporations that are not from the U.S.”

    “In many cases, nations that are heavily dependent on exports have had no choice but to ‘eat’ the tariffs to avoid even worse losses from their excess capacity,” he added.

    The New York Fed’s findings, which align with those of most mainstream economists, challenge that view. For the eight-month period from January through August, U.S. importers bore 94% of tariff costs. By November, exporters were shouldering slightly more of the burden, but U.S. importers remained on the hook for 86% of tariffs, according to the analysis. 

    “In sum, U.S. firms and consumers continue to bear the bulk of the economic burden of the high tariffs imposed in 2025,” the report concluded. 

    Defending tariffs

    The White House on Thursday defended Mr. Trump’s tariffs, touting the economic gains.

    “America’s average tariff rate has increased nearly sevenfold in the past year, yet inflation has cooled and corporate profits have increased,” White House spokesperson Kush Desai said in a statement to CBS News. “The reality is that President Trump’s economic agenda of tax cuts, deregulation, tariffs, and energy abundance [is] reducing costs and accelerating economic growth.”

    Recent data point to solid economic growth. The nation’s gross domestic product expanded at a robust 4.3% annual pace in the third quarter, the strongest growth in two years. 

    The job market also remains healthy, with employers adding a stronger-than-expected 130,000 jobs in January, according to employment figures released earlier this week. 

    Tariffs could be struck down

    Economists predicted last year that elevated tariffs on imports were likely to drive up inflation. For the most part, those price hikes have failed to materialize.

    In December, the Consumer Price Index rose at an annual rate of 2.7%, unchanged from November. The Department of Labor is scheduled to release the January CPI data on Friday. 

    The Treasury Department collected $287 billion in tariffs in 2025, up 192% from the previous year, according to the Federal Reserve Bank of Richmond. 

    Yet President Trump’s scope to wield tariffs in future is uncertain, with the Supreme Court expected to rule soon on his authority to impose levies under a federal emergency powers law.

    If those tariffs are struck down, the U.S. government could owe businesses as much as $168 billion in refunds, according to the University of Pennsylvania’s Wharton School. 

    Edited by

    Alain Sherter

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  • Lesotho and Its Textile Workers Hope African Duty-Free Deal Extension Heralds US Trade Revival

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    Feb 5 (Reuters) – Since she was laid ‌off ​in October, after Lesotho lost ‌tariff-free access to its vital U.S. garments market, Matokelo Masenkane ​has got up early each morning to queue at the textile factory gates in search ‍of casual work. 

    “It ​is even more painful taking the already little food from the house to ​eat while ⁠you queue, when you could have … shared it with your kids,” the 36-year-old mother of three said.

    Lesotho, which has benefited from a longstanding preferential trade deal with the U.S., was at risk of losing this protection when the agreement – the African Growth ‌and Opportunity Act – expired in September.

    U.S. President Donald Trump on Tuesday signed an extension ​of ‌AGOA, first enacted in ‍2000, through ⁠to December 31, 2026.

    The extension ended months of uncertainty over the programme, amid punishing tariffs imposed on countries across the world by Trump on “liberation day,” on April 2.

    The expiry of AGOA, introduced to provide duty-free access to the U.S. market for eligible Sub-Saharan African countries covering more than 1,800 products, had put hundreds of thousands of African jobs at risk.

    For Lesotho, ​Africa’s most U.S.-dependent exporter, it was a relief, though it merely kicked the uncertainty down the road.

    “I’m optimistic that we will get something long term,” Lesotho’s Trade Minister Mokhethi Shelile told Reuters in an interview at his office. “The one-year extension … is not a conducive timeline for our businesses.” 

    The textile industry is Lesotho’s leading export sector. Textile exports to the U.S. under AGOA have made up about a tenth of the country’s around $2 billion gross domestic product.

       In April, Lesotho initially got hit with Trump’s highest 50% tariff, but it was ​later reduced to 15% – still tough for a country dependent on U.S. consumers buying its clothes.

    U.S. goods and services trade with Lesotho totalled $276 million in 2024.

    “We have to start working now to have the U.S. provide us with ​a framework of a proper trade policy for Africa,” Shelile said.

    (Writing by Tim Cocks. Editing by Jane Merriman)

    Copyright 2026 Thomson Reuters.

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  • Argentina Signs Critical Minerals Deal With US, Foreign Ministry Says

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    Feb 4 (Reuters) – ‌Argentina ​and ‌the United States ​signed an ‍agreement on critical ​minerals ​on ⁠Wednesday to strengthen and secure supply chains, ‌the Argentine foreign ​ministry said.

    The ‌ministry ‍said in a ⁠statement that the initiative is expected to ​drive significant economic growth for Argentina. The country’s mining exports reached $6.04 billion in 2025, the ministry said. 

    (Reporting ​by Leila Miller; Writing by Brendan O’Boyle; ​editing by Cassandra Garrison)

    Copyright 2026 Thomson Reuters.

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  • Ken Griffin is apparently done with ‘sucking up’ to the White House | Fortune

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    A carousel of CEOs has paraded through the White House since President Trump was elected a little over a year ago—they even made up a front-row bench at his inauguration. This isn’t unusual; in fact, it’s entirely expected that the president might want to engage with the private sector.

    But when does that relationship get too close for comfort?

    The nature of the relationships between top brass at America’s largest business and the Oval Office is beginning to make some people uncomfortable: As Citadel CEO Ken Griffin warned this week, “when the U.S. government starts to engage in corporate America in a way that tastes of favoritism, I know for most CEOs that I’m friends with, they find it incredibly distasteful.”

    Trading conditions under Trump 2.0 have been markedly different than the previous decade, throwing markets and executives into disarray. In the volatility following Trump’s Liberation Day announcement in April, Griffin said the sight of business leaders lining up at the Oval Office door to request exceptions to the new duties was “nauseating,” and that the White House showing favor to certain companies undermines the American Dream.

    An environment addled by politics isn’t one most CEOs relish, Griffin, 57, told the Wall Street Journal’s Invest Live conference yesterday. He said founders and leaders “want to go run our businesses and win on the merits of providing a better customer to our products at a lower price. Like that’s how we win.”

    Griffin warned executives are thinking, ‘I’m close to this administration, but does that mean the next administration is going to grant a favor to one of my competitors, or take a favor away from me, because I don’t support them publicly?’

    This second-guessing isn’t conducive to decision-making, Griffin added: “Most CEOs just don’t want to find themselves in the business of having to, in some sense, suck up to one administration after another to succeed in running their business.”

    Griffin, himself a top GOP donor, has been something of a critical friend to the White House. He has been candid in his warnings, but has also highlighted Trump’s return to the Oval Office was a welcome relief from the “regulatory onslaught” companies faced under Biden.

    Speaking to Fox Business weeks ago, Griffin (a native Floridian who has shifted his operations away from New York and in the direction of the Sunshine State) said to have that “literally end on one day—Election Day—just gives you so much energy as an entrepreneur to go back and build your damn business.”

    That said, the man worth $51.2 billion, per Forbes, also highlighted the individual gains extended to the families of the Trump administration. “One of one of the things that you want to believe is that those who serve the public interest have the public interest at heart in everything they do,” he said. “And I think that that this administration has definitely made missteps in choosing decisions or courses that have been very, very enriching to the families of those in the administration.”

    ‘Extinguished’ voice of corporate America 

    While Griffin was critical of CEOs using their position for individual benefit, he made it clear the opinions of corporate leaders should still bear weight in national conversation.

    Companies caught in “the whole woke movement” served as a lesson to corporate leaders that consumers could make or break their business overnight, said Griffin, claiming it had “created a level of fear and apprehension amongst the corporate CEO class to insert themselves in any publicly facing issues these days.”

    Griffin pointed to Tesla CEO Elon Musk, who served a brief stint in the White House, leading the highly controversial Department of Government Efficiency (DOGE). DOGE’s work was heavily criticised, as it included slashing billions from foreign aid budgets, which philanthropists like Bill Gates warned would lead to the deaths of millions of children.

    Tesla suffered a boycott with cars, showrooms, and charging points damaged beyond repair not only in the U.S. but also across Europe. A couple of examples include Molotov cocktails being thrown at vehicles in Las Vegas, gunshots fired at a showroom in Portland, Oregon and charging points set on fire in Boston, Massachusetts.

    While Griffin admitted “we can do more than quibble about some of the choices or things that [Musk] said,” he added, “we should admire that willingness to give up oneself to make our country better.”

    “We need the voices of America’s corporate leadership in the halls of Washington, in the front page of papers to talk about the issues that we need to have for domestic prosperity,” Griffin continued.

    This story was originally featured on Fortune.com

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    Eleanor Pringle

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  • Long Island business confidence dips amid economic challenges | Long Island Business News

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    THE BLUEPRINT:

    • Long Island declined this year after a post-2024 election high.

    • Affordability and housing costs remain major concerns for .

    • Survey included 311 business leaders.

    Last year there was a measurable uptick in confidence among Long Island business leaders. This year that confidence dipped. Some of that decline reflects ongoing challenges, including long-standing affordability issues and, more recently, broader uncertainty. Local leaders met Thursday morning at the Crest Hollow Country Club in Woodbury to better understand the factors that are shaping Long Island’s economy.

    The gathering centered on the “Long Island Results Launch,” hosted by in partnership with the (SRI). The results provided insights via 311 Long Island business leaders who participated in the survey, helping to identify emerging trends, challenges and opportunities.

    The event included a panel moderated by PKF O’Connor Davies Partner Jeffrey Davoli. The survey’s results were delivered by Don Levy, director of SRI. Levy was also part of a panel discussion that included U.S. Reps. Nick LaLota (R-Amityville) and Tom Suozzi (D-Glen Cove), as well as Stacey Sikes, vice president of government affairs and communications at Long Island Association.

    Business confidence slipped from a “post-2024 election high,” prompting leaders to take a more cautious approach, according to Levy.

    “Fifty-four percent of the businesses we spoke to a year ago predicted that the year ahead was going to be better,” Levy said. “They were excited.”

    Those business leaders had planned to invest in fixed assets, add employees and see increased revenue and profitability.

    But, Levy said, “the year did not live up to their expectations.”

    Expectations for both the Long Island and national economies, according to the survey, declined sharply, with pessimism about the more than doubling from the year prior.

    Volatility, including and energy, may play a role in impacting business confidence, LaLota said.

    “What government does or doesn’t do, I think, can help or hurt you, and just having stability in those areas” can be important to businesses as they look at revenues and the ability to hire, he said.

    Uncertainty around tariffs are a big concern for owners, Suozzi said, adding that they are worried about upcoming changes to the current business environment.

    “I’ve talked to so many businesses that ordered things from overseas. While it was on the boat, the tariffs went up,” Suozzi said. “They got hit when they got to the dock with a $500,000 bill that they didn’t plan for. People can’t function in that environment. That affects the confidence. That affects your desire to say yes, I’m going to invest in this.”

    Also impacting confidence is affordability, something that’s now part of a national discussion, although Long Island has been grappling with the challenge, especially housing costs, for decades.

    Affordability is even seeping into . Davoli pointed out that, according to the survey, “70 percent express concern, yet only 27 percent have a structure plan in place.”

    Sikes said she wasn’t surprised that succession planning is an issue, especially at a time when the population is getting older.

    “We already have a challenge keeping young people on Long Island,” she said. “A median home price is $800,000 on Long Island. How can any young person afford a down payment, a closing cost, the mortgage and the taxes?” The region’s high cost of living makes it difficult for businesses to bring in and retain the next generation of leaders.

    When it comes to adding housing and navigating zoning, LaLota, said, “local control is always best. The state and the feds should not have a role in that.”

    Suozzi said that 95 percent of housing should be single family homes, but recommended that 5 percent, or less, should include housing in downtowns. “We have to build places where young people can afford to live,” but still “preserve our suburban quality of life in the process,” he said.

    Both Suozzi and LaLota spoke about bringing tax dollars back to New York State, adding that at the federal level, the state only gets back 85 cents for every dollar it sends to Washington, DC.

    Suozzi pointed out that New York State is more expensive than Florida and Texas because New York has the lowest rate of uninsured adults and children, while the two other states have the highest. New York also pays teachers more than many other states.

    New York, he said, has tremendous wealth, “but we have to get that wealth back to our state to try and reduce our costs. Or we’re going to lose this population fight because people are moving to these southwestern and southeastern lowest tax states, and we’re not keeping up with them.

    “Federal tax policy can help with that,” he said. “But it’s going to be a tough fight.”

    The complete survey is available here.


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    Adina Genn

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  • Trump says he’s raising tariffs on South Korea to 25%

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    President Trump on Monday said he is raising tariffs on South Korea because the nation has not yet approved a trade deal with the U.S. that the two countries agreed to last year. 

    Mr. Trump said in a social media post that the U.S. will increase its tariff on imports from South Korea from 15% to 25% and also hike levies on the country’s automobiles, lumber and pharmaceutical goods. 

    “South Korea’s Legislature is not living up to its Deal with the United States. President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn’t the Korean Legislature approved it?” Mr. Trump said in announcing the stepped-up duties. 

    The two countries reached a deal on trade and security issues after Mr. Trump met his South Korean President Lee Jae-myung in Seoul last year. Under the agreement, the U.S. cut its tariffs on South Korean vehicles, car parts, pharmaceuticals and other products from 25% to 15%. 

    The pact also called for South Korea to invest $350 billion in several key U.S. sectors, including semiconductors, shipbuiling and biotech.

    As of late 2025, South Korea was the U.S.’ eighth-largest trading partner, with total trade between the nations of $162 billion, according to Census Bureau data. The auto industry accounts for 27% of South Korea’s exports to the U.S., which takes in nearly half of the country’s car exports.

    The Supreme Court is expected to rule soon on the legality of the Trump administration’s country-specific tariffs, which the White House has imposed on dozens of nations under the International Emergency Economic Powers Act, or IEEPA. 

    If they are struck down, White House officials have said they can turn to other powers that effectively replace the sweeping levies. 

    Edited by

    Alain Sherter

    AFP

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  • Gold Hits Record $5K While Bitcoin Struggles To Keep Pace

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    Gold shone brightly today, racing to a new high while crypto took the back seat, and the gap between the two assets opened wide.

    Related Reading

    On Monday, the precious metal moved past the $5,000 mark, registering a price point market sentinels had not witnessed before. Bitcoin, by contrast, failed to keep pace and traded well below its recent highs.

    Gold Hits Record Levels

    Safe-haven demand pushed gold sharply higher. Prices were up above $5k an ounce and inked roughly $5,110 at the peak. Silver, for its part, did not go unnoticed, jumping to fresh peaks near $107/ounce.

    Source: Gold Price

    Traders pointed to simmering geopolitical friction and talk of tougher trade moves led by US President Donald Trump as fuel for the rally.

    A weaker greenback made metals more attractive to customers overseas, and central bank buying provided steady backing. Liquidity in some corners were thin as investors rushed to shift cash into things that feel stable when risk elevates.

    Bitcoin Falls Behind

    Market numbers show Bitcoin hovering in the mid-$80,000s range, retreating from peaks seen late last year. Reports note the alpha crypto is roughly 30% below the highest level it hit reached in October 2025, leaving some holders quite jittery.

    Volatility was another factor. Where bullion is being sought for safety, Bitcoin is viewed more as a growth or speculative play, and that difference in investor application becomes clear when markets tighten. Some funds slashed their crypto exposure, signaling a short reroute away from high-risk gambits.

    BTCUSD currently trading at $87,832. Chart: TradingView

    Why Investors Are Shifting

    Analysts and traders described a simple choice: shelter or swing for gains. When headlines push worry, money flows into assets that are widely trusted across markets and governments.

    Metals fit that ticket. Based on market chatter, fears of a US government funding clash and fresh tariff announcements stacked pressure on stocks and added a sense of urgency to safe-haven acquisition.

    Options and futures trading hinted at a more cautious perpective, with volatility indexes rising and bond yields behaving in ways that made the yellow metal look more appealing by comparison.

    Related Reading

    What Traders Are Watching

    Market watchers said eyes will be glued on a few key metrics: The dollar’s path, moves by major central banks, and any sign that US politics escalates could keep metals elevated.

    For Bitcoin, network activity, large wallet flows, and regulatory headlines will likely set the tone. Some traders expect swings both ways. Others caution that when risk appetite is back, crypto may bounce hard, but that outcome is not a sure thing and will be dependent on a string of policy and macro moves.

    Featured image from Unsplash, chart from TradingView

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    Christian Encila

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  • Wall Street celebrates the end of Trump’s Greenland drama and is hoping the Supreme Court will kill the rest of his tariffs | Fortune

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    The S&P 500 closed up 0.55% yesterday on good news about U.S. GDP growth and President Trump backing down over his plan to invade Greenland. The S&P is again above 6,900 and within 1% of its all-time high. Gold hit another record yesterday, too.

    But futures on the index were down 0.24% prior to the opening bell in New York and markets in Europe sold off slightly this morning after Asia closed mixed, a sign that traders are booking profits after yesterday’s rally. 

    On the macro front, Wall Street analysts are bullish. It’s a marked change from the fraught mood of the last few days, when investors were anticipating another transatlantic tariff war.

    In fact, Trump’s tariffs are turning out to be a much smaller economic deal than “earlier worst-case fears,” JPMorgan Chase says. Companies have adjusted their pricing and supply chains, and the result is “the realized tariff rate has been much lower at ~11% (versus expectations of 15%,”), according to Dubravko Lakos-Bujas and his team. “Only 14% of S&P 500 companies are highly sensitive to tariffs.” 

    And it could get better if the U.S. Supreme Court rules against the president, the bank says.

    “Prediction markets assign >65% odds that the Supreme Court rules against the government, and those odds have consistently been against the government, especially following the November Supreme Court oral arguments,” Lakos-Bujas told clients.

    Source: Polymarket

    Analysts were also cheered by a new upward revision for Q3 2025 U.S. GDP, at 4.4%. 

    “The 4.4% real growth rate is much higher than normal and is likely to moderate over the course of the year, but if we can stay above 3% for the entire year it could lead to double-digit returns in the stock market,” Chris Zaccarelli, chief investment officer at Northlight Asset Management said in an email seen by Fortune.

    EY-Parthenon Chief Economist Gregory Daco was singing from the same hymnbook. “Momentum was driven by resilient consumer spending, robust equipment and AI-related investment, a sizeable boost from net international trade, and a rebound in federal government outlays. The U.S. economy is neither overheating nor stalling—it is adjusting,” he said in a note.

    All of that explains the calm we’re seeing in the markets today.

    “For some assets, it was almost like the selloff never happened, with the VIX index of volatility (-1.26pts) back at 15.64pts, which is beneath its levels prior to Saturday’s tariff announcements,” according to Jim Reid and his team at Deutsche Bank. 

    Here’s a snapshot of the markets ahead of the opening bell in New York this morning:

    • S&P 500 futures were down 0.24% this morning. The last session closed up 0.55%.
    • STOXX Europe 600 was down 0.22% in early trading.
    • The U.K.’s FTSE 100 was down 0.11% in early trading. 
    • Japan’s Nikkei 225 was up 0.29%.
    • China’s CSI 300 was down 0.55%.
    • The South Korea KOSPI was up 0.76%. 
    • India’s NIFTY 50 was down 0.95%. 
    • Bitcoin was flat at $89.9K.
    Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

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  • Trump Says Greenland Agreement Still Being Negotiated

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    Jan 22 (Reuters) – President Donald Trump said the ‌details ​of a U.S. agreement ‌over Greenland were still being worked out on Thursday, ​speaking one day after he stepped back from a tariff threat and ruled out ‍the use of force ​to seize the Danish territory.

    Trump, in an interview on Fox Business Network ​from ⁠Davos, also acknowledged the impact of his quest for Greenland on global markets and said he did not plan to pay to acquire it.

    “It’s really being negotiated now, the details of it. But essentially it’s total access. It’s – ‌there’s no end, there’s no time limit,” Trump said from the ​sidelines of ‌the World Economic Forum.

    “I ‍noticed ⁠the stock market went up very substantially after we announced it,” he told FBN’s “Mornings with Maria” program.

    Asked about the possibility of Europeans selling U.S. stocks and bonds, he added: “If they do, they do. But if that would happen, there would be a big retaliation on our part, and we have all the cards.”

    Trump began ​floating the idea of acquiring Greenland after taking office last year but stepped up his rhetoric in recent weeks, threatening a 10% tariff on eight European countries over the weekend that shook investors.

    He continued his push in a more than hour-long speech at Davos on Wednesday before meeting with the head of NATO and announcing plans for a new deal that has yet to be defined.

    Asked on Thursday what he was willing to pay for the semi-autonomous ​territory, he added: “We’re going to not have to pay anything other than the fact that we are building the Golden Dome.”

    Trump said any deal would allow “total access” to Greenland, including for the military: “We’re ​getting everything we want at no cost”.

    (Reporting by Susan Heavey; Editing by Alex Richardson, William Maclean)

    Copyright 2026 Thomson Reuters.

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  • Denmark to Discuss Arctic Security, Seeks Respect for Territorial Integrity

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    COPENHAGEN, Jan 22 (Reuters) – Danish Prime ‌Minister ​Mette Frederiksen said on ‌Thursday that Denmark and Greenland will continue ​to engage in a constructive dialogue on security in the ‍Arctic, provided that this is ​done with respect for her country’s territorial integrity.

    U.S. ​President ⁠Donald Trump abruptly stepped back on Wednesday from threats to impose tariffs as leverage to seize Greenland, ruled out the use of force and suggested a deal was in sight ‌to end a dispute over the Danish territory.

    After meeting ​with ‌NATO Secretary General Mark ‍Rutte, ⁠Trump said Western Arctic allies could forge agreement that satisfies his desire for a “Golden Dome” missile‑defence system and access to minerals while blocking Russia and China’s ambitions.

    Frederiksen said NATO was fully aware of Denmark’s position, and that she had been informed ​that Rutte’s talks did not involve her country’s sovereignty.

    “”Security in the Arctic is a matter for the entire NATO alliance. Therefore, it is good and natural that it is also discussed between NATO’s secretary general and the president of the United States,” Frederiksen said in a statement.

    “The Kingdom of Denmark wishes to continue to engage in a constructive dialogue with allies ​on how we can strengthen security in the Arctic, including the United States’ Golden Dome, provided that this is done with respect for our territorial integrity,” ​she said.

    (Reporting by Stine Jacobsen, editing by Terje Solsvik and Essi Lehto)

    Copyright 2026 Thomson Reuters.

    Photos You Should See – January 2026

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  • 7 ways Europe could hurt the U.S. if Trump doesn’t back down over Greenland | Fortune

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    President Trump told those gathered at the World Economic Forum in Davos that he would not use force to take Greenland, and the world breathed a sigh of relief. But he is still pushing tariffs on Europe if Denmark refuses to sell its territory to the U.S.

    Trump’s plan has outraged European leaders. “Being a happy vassal is one thing. Being a miserable slave is something else,” Belgian Prime Minister Bart De Wever said. French President Emmanuel Macron said Trump’s “endless accumulation of new tariffs” were “fundamentally unacceptable.” Meanwhile, European Commission President Ursula von der Leyen called for the EU to become “independent” from the U.S. and to make that independence “permanent.”

    But does Europe have enough economic weaponry to force the White House to think again?

    Maybe, according to Wall Street analysts.

    Here are seven ways the E.U. could hurt the U.S. economically if Trump refuses to take “no” for an answer on Greenland, according to research by George Saravelos of Deutsche Bank, Joachim Klement of Panmure Liberum, Macquarie’s Thierry Wizman and Gareth Berry, and Pantheon Macreconomics’ Samuel Tombs and Oliver Allen.

    1. Reduce the supply of foreign direct investment into U.S. bonds and equities by incentivizing investors to keep their capital assets in Europe.
      “European countries own $8 trillion of U.S. bonds and equities, almost twice as much as the rest of the world combined,” Saravelos told clients a few days ago.
    2. Impose the $100 billion in duties on U.S. imports that were proposed and then dropped when the E.U. accepted a tariff deal last year. 
    3. Use the Digital Services Act to further limit how U.S. tech companies operate. 
    4. Implement the “Buy European” act to direct government purchases more toward European vendors.
    5. Implement the Anti-Coercion Instrument (ACI) to impose tariffs on U.S. services companies and companies linked to the U.S. government.
      The ACI would virtually ban U.S. services companies from operating in Europe, while Europe holds a trade surplus with the U.S. in services. This measure is often referred to as Europe’s trade “bazooka.”
    6. “Introduce export taxes on EU products exported to the U.S. that are hard to replace, such as chip-making equipment or specialized machinery,” Macquarie says.
      Removing the U.S.’s access to Netherlands-based semiconductor suppliers ASML, which has a virtual monopoly on some technologies, would create logistical challenges for many U.S tech companies.
    7. Place sanctions on U.S. companies operating in Greenland.

    “The U.S. has one key weakness: it relies on others to pay its bills via large external deficits. Europe, on the other hand, is America’s largest lender: European countries own $8 trillion of US bonds and equities, almost twice as much as the rest of the world combined. In an environment where the geoeconomic stability of the western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part,” Saravelous told clients in a note that annoyed Treasury Secretary Scott Bessent.

    Trump is not likely to take this lying down. Klement wrote on his Substack: “Of course, these actions will trigger an escalation by Trump in the short term, which is why some EU leaders like Friedrich Merz of Germany are currently trying to soften the EU’s response.

    “But 2025 also has shown that if countries remain firm, the escalation cycle ends within a couple of weeks and Trump rows back (or should I say ‘chickens out’?) once he realises he can’t bully others into submission.”

    At Macquarie, the analysts warned that a comprehensive package of economic sanctions against the U.S. would increase price inflation in America. “The EU has the capacity to retaliate economically, and may do so in the hope that a firm EU retaliation (to threats or military action by the U.S.) will end the escalation cycle after a few weeks, and that this is a risk worth taking. What can the EU do, actually? The EU can do enough to hurt the U.S. economy and U.S. security, and these the trade-related measures would likely be jointly inflationary,” they said.

    The ACI “bazooka” won’t hobble the U.S. but it could hurt, Tombs and Allen say. “U.S. services exports to the E.U. were $295bn in 2024, equivalent to 0.9% of U.S. GDP, suggesting the harm could be much greater if the E.U. pulled this relatively new lever at its disposal than if it responded simply with tariffs, though its economy would be hurt more too,” they told clients.

    Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

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    Jim Edwards

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  • Amazon CEO warns prices have gone up from tariffs

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    Some of the things people buy the most are at their most expensive point of the year as the calendar changes over to 2026. Our get the facts data team dug into what actually caused the prices of some items to go up or go down. Let’s start with beef. Right now, the average price for ground beef is 823 per pound and 967 for steaks, the highest prices for both all year. Several factors like President Trump’s tariffs. Cattle inventories and an aging farming population contributed to the increase, but so did something called the New World screwworm, *** parasitic fly that produced *** deadly disease in some places like Mexico. Another grocery staple that is more expensive now, coffee. Our get the Facts data team found the price rose each month throughout the year, maxing out at 926 cents *** pound. Two of the world’s biggest coffee producers, Brazil and Vietnam, Were impacted by drought and excessive rains earlier this year, which reduced coffee production, and Brazil saw an additional 40% tariff over the summer as well. One of the biggest talking points, especially from President Trump about the state of the economy was egg prices. They are one of the few items tracked that actually are cheapest now. Egg prices saw their biggest price hike in nearly 10 years in January, then rose to an all-time high of 623. Per dozen in March. This was in large part to ongoing bird flu outbreaks. Egg prices would start falling in the summer and are now 286 *** dozen. Some other groceries that saw increases this year, cookies, potato chips, bacon, cheddar cheese, and orange juice. But it wasn’t all increases at the supermarket. Some items are cheaper now compared to January, like pasta, white bread, tomatoes, and strawberries. In Washington, I’m Amy Lou.

    If your next Amazon order seems more expensive, President Donald Trump’s sweeping tariffs may be partially to blame, Amazon CEO Andy Jassy said Tuesday.Like many retailers, Amazon and its vast network of third-party sellers loaded up on inventory ahead of Trump’s tariff rollout last spring. But that supply ran out by the fall, Jassy said in a CNBC interview on the sidelines of the World Economic Forum in Davos, Switzerland.“So you start to see some of the tariffs creep into some of the prices, some of the items,” he said. “Some sellers are deciding that they’re passing on those higher costs to consumers in the form of higher prices, some are deciding that they’ll absorb it to drive demand and some are doing something in between.”The comments are a stark shift from last June, when Jassy said in a CNBC interview that the company had not seen “prices appreciably go up.” That was after Amazon drew the direct ire of Trump and members of his administration following reports that the e-commerce giant planned to display how tariffs were impacting prices.After Trump spoke with Amazon founder Jeff Bezos at the time, a company spokesperson told CNN the move “was never a consideration for the main Amazon.” It was only being considered for certain products on its spinoff site, Haul, which sells items below $30, the company said.On Tuesday, though, Jassy said: “We’re going to do everything we can to work with our selling partners to make prices as low as possible for consumers, but you don’t have endless options.”In a statement, though, the company told CNN that overall price levels have not changed more than expected. “While we are seeing prices for some sellers and some brands go up, overall the prices of products on Amazon have not changed outside of normal fluctuations,“ an Amazon spokesperson said.And the White House said it maintains that foreign exports are footing that tariff bill.“The average tariff imposed by America has increased by almost tenfold under President Trump, and inflation has continued to cool from Biden-era highs,” White House spokesman Kush Desai said in a statement.“The Administration has consistently maintained that foreign exporters who depend on access to the American economy, the world’s biggest and best consumer market, will ultimately pay the cost of tariffs, and that’s what’s playing out,” he added.Amazon isn’t the only retailer warning of higher prices because of tariffs. Walmart, Target and Home Depot and many other companies have publicly said tariffs are making products more expensive. And while overall consumer inflation was modest last year, many businesses surveyed by the Federal Reserve in its latest Beige Book, a collection of anecdotes, warned they’re planning bigger price hikes this year.

    If your next Amazon order seems more expensive, President Donald Trump’s sweeping tariffs may be partially to blame, Amazon CEO Andy Jassy said Tuesday.

    Like many retailers, Amazon and its vast network of third-party sellers loaded up on inventory ahead of Trump’s tariff rollout last spring. But that supply ran out by the fall, Jassy said in a CNBC interview on the sidelines of the World Economic Forum in Davos, Switzerland.

    “So you start to see some of the tariffs creep into some of the prices, some of the items,” he said. “Some sellers are deciding that they’re passing on those higher costs to consumers in the form of higher prices, some are deciding that they’ll absorb it to drive demand and some are doing something in between.”

    The comments are a stark shift from last June, when Jassy said in a CNBC interview that the company had not seen “prices appreciably go up.” That was after Amazon drew the direct ire of Trump and members of his administration following reports that the e-commerce giant planned to display how tariffs were impacting prices.

    After Trump spoke with Amazon founder Jeff Bezos at the time, a company spokesperson told CNN the move “was never a consideration for the main Amazon.” It was only being considered for certain products on its spinoff site, Haul, which sells items below $30, the company said.

    On Tuesday, though, Jassy said: “We’re going to do everything we can to work with our selling partners to make prices as low as possible for consumers, but you don’t have endless options.”

    In a statement, though, the company told CNN that overall price levels have not changed more than expected. “While we are seeing prices for some sellers and some brands go up, overall the prices of products on Amazon have not changed outside of normal fluctuations,“ an Amazon spokesperson said.

    And the White House said it maintains that foreign exports are footing that tariff bill.

    “The average tariff imposed by America has increased by almost tenfold under President Trump, and inflation has continued to cool from Biden-era highs,” White House spokesman Kush Desai said in a statement.

    “The Administration has consistently maintained that foreign exporters who depend on access to the American economy, the world’s biggest and best consumer market, will ultimately pay the cost of tariffs, and that’s what’s playing out,” he added.

    Amazon isn’t the only retailer warning of higher prices because of tariffs. Walmart, Target and Home Depot and many other companies have publicly said tariffs are making products more expensive. And while overall consumer inflation was modest last year, many businesses surveyed by the Federal Reserve in its latest Beige Book, a collection of anecdotes, warned they’re planning bigger price hikes this year.

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  • Live fact-checking Donald Trump’s Davos speech

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    President Donald Trump will address the World Economic Forum in Davos, Switzerland, on Jan. 21. His address to world, policy and economic leaders follows Trump’s jockeying to own Greenland, tensions with NATO allies and the U.S. military capture of Venezuelan leader Nicolas Maduro.

    PolitiFact will fact-check Trump live: 

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  • How Europe Can Respond to Trump’s Greenland Imperialism

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    That is interesting, but it’s not exactly ideological. It’s that he sees European weakness and wants to exert power.

    That is true. When Trump first came to power, there was some very interesting analysis from historians trying to gain an understanding of Trump’s world view. Something that they figured out was that, throughout his career, President Trump has held a strong belief that there was something totally wrong that, after the end of World War Two, countries like Germany and Japan were able to do so well. In his understanding, it did not make sense that the United States, the United Kingdom, and even the Soviet Union won the war, but the Germans and the Japanese were doing so well. And then it transformed into “America won, so why are Europeans living better than us? Why do they have better cars?” Etc.

    And I do believe that world view stayed with him. Moreover, he does not understand what the European Union is. Europeans believe in win-win scenarios. They do believe that you really can find a way to compromise. If there is a religion of European politics, it is about compromise and consensus. And then you have somebody like Trump, who’s not interested in this.

    I was talking to an American analyst, a colleague of mine, and he made an observation, which I found profound, but will probably seem trivial to you. He said President Trump had a successful business career in many respects, but he was not spectacularly successful in one business that he tried, and this was the casino business. The problem is that in the casino business, in order to win, you should try to create the illusion that others are winning.

    I think that’s pretty good. I don’t find that trivial, actually.

    This was looking like a Crimean moment. So trust in the United States was very much based on the fact that, regardless of our differences, Europe can rely on the Americans when it comes to Russia, and now nobody believes it anymore.

    When you say a Crimean moment, I assume you’re referring to Russia taking Crimea twelve years ago, and that that was only the beginning of their designs on Ukraine, and that Trump’s desire to seize Greenland could similarly be a first step. Is that what you meant?

    No. It is that in 2012 and 2013, prior to the invasion of Crimea, President Putin’s popularity had declined a bit, and there had been some protests in Russia. And then suddenly you have basically this super-majority of support that emerges after he annexes Crimea. And, in my view, President Trump also thinks that if suddenly, overnight on July 4, 2026, Greenland becomes part of the United States, then America is going to understand how great they have become. And I do believe this is really scaring many in Europe because they imagine that this is going to be a politics that others want to imitate.

    I think Trump is totally wrong about how Americans would react to that, but it also just might not matter. And that in itself is scary enough. Are there off-ramps you see?

    I believe there is going to be a group of countries, including those in Eastern Europe, saying, “Listen, let’s talk seriously. We are going to recognize the strategic dimension of Greenland, but what we cannot talk about is America owning it.” And here President Trump basically has an option. Either he’s going to say, “I achieved what I wanted to do. I never meant owning it. It was just about a deal, and now we are going to, for example, increase our military presence there, or it is going to be our companies that are going to develop some of the rare-earth resources of Greenland.” Something like this can happen. But my feeling is that at this moment President Trump is not interested in this. It has become too symbolic for him.

    The other option for compromise is that Europeans are going to keep Greenland, and we are going to make Trump the chair of the Nobel Prize Committee so he can give the next Nobel Prize to himself. But, as of now, I do believe that Europeans probably are going to target some American goods. And we will see about the Anti-Coercion Instrument going forward.

    You mentioned earlier that Europeans thought Trump really did care about building a coalition against China. But now it seems possible that one of the long-term effects of America potentially breaking with Europe in a major way would be to provide an opening for China.

    Totally. This is the story. And I also believe Europeans are still hanging on to the hope that some part of the American élite—the financial élite but also the military élite—is going to go to President Trump and say, “Listen, you dislike Europe. And, of course, Europeans are idiots as you told us, but they’re idiots that we need.” If you look at global public opinion, people believe China is rising, but what is more interesting is that they have stopped fearing this. And I do believe this is something that President Trump slightly underestimated.

    And then there is the question of NATO. Many Europeans have started to ask themselves the question of whether their belief in NATO has started to resemble the French belief in the famous Maginot Line. Before World War Two, the French created this “fortification” on the German-French border, which created the feeling that they were defended, and then it turned out that it was not the case. So, suddenly, this destabilization of Europe can really have far-reaching consequences. This is why some Europeans still believe that at a certain point there is going to be a strategic realization on the side of the Trump Administration that this is not a war worth fighting.

    I hope you’re right, but you said Trump may have “underestimated” what effect all this would have with regard to China’s potential influence going forward. I don’t think this was underestimated or overestimated. I don’t think it goes into the equation of what he’s thinking about. The concept of a misguided national interest is one thing. Lots of Presidents have had those. The concept of a person who has no conception of the national interest is maybe closer to the mark.

    No, you’re right. And do you know what the real risk for Europe is? The real risk for Europe is that Greenland will become Trump’s obsession. Because one of the important things about President Trump is that he has strong views, but he cannot keep his attention for a very long time on the same issue. And, if this basically becomes an obsession, then the nature of the change to the transatlantic relationship is going to be really, really dramatic. ♦

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  • ‘This will be an interesting trip’: President Trump to speak in Switzerland amid Greenland uproar

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    President Donald Trump will deliver a speech today at the World Economic Forum in Davos, Switzerland, focusing on a plan to make housing more affordable, while his comments about acquiring Greenland continue to stir tensions with European allies.”This will be an interesting trip. I have no idea what’s going to happen, but you are well represented,” Trump told reporters before departing the White House for Switzerland.The speech comes shortly after he threatened to impose tariffs on Denmark and seven other allies due to their opposition to his interest in acquiring Greenland. Trump announced that the tariffs would start at 10% next month and increase to 25% by June. The tensions over the U.S. interest in the Danish territory have already affected Wall Street, with stocks rattled on Tuesday.In Davos, Canada’s Prime Minister Mark Carney warned global leaders that the world is “facing a rupture,” emphasizing the risks of countries trying to avoid conflict by compliance. “There is a strong tendency for countries to go along to get along, to accommodate to avoid trouble, to hope that compliance will buy safety. Well, it won’t,” Carney said.Carney also added that Canada opposes tariffs over Greenland. Trump’s speech is expected to focus largely on housing, and following his address, he will meet with leaders at the forum, according to the White House.Home sales in the U.S. are at a 30-year low with rising prices. Reports show elevated mortgage rates are keeping prospective home buyers out of the market. Rent, for several years, has been the largest contributor to inflation.This comes as Trump announced his plan to buy $200 billion in mortgage securities to help lower interest rates on home loans. He’s also called for a ban on large financial companies buying houses. Keep watching for the latest from the Washington News Bureau:s

    WASHINGTON —

    President Donald Trump will deliver a speech today at the World Economic Forum in Davos, Switzerland, focusing on a plan to make housing more affordable, while his comments about acquiring Greenland continue to stir tensions with European allies.

    “This will be an interesting trip. I have no idea what’s going to happen, but you are well represented,” Trump told reporters before departing the White House for Switzerland.

    The speech comes shortly after he threatened to impose tariffs on Denmark and seven other allies due to their opposition to his interest in acquiring Greenland.

    Trump announced that the tariffs would start at 10% next month and increase to 25% by June.

    The tensions over the U.S. interest in the Danish territory have already affected Wall Street, with stocks rattled on Tuesday.

    In Davos, Canada’s Prime Minister Mark Carney warned global leaders that the world is “facing a rupture,” emphasizing the risks of countries trying to avoid conflict by compliance.

    “There is a strong tendency for countries to go along to get along, to accommodate to avoid trouble, to hope that compliance will buy safety. Well, it won’t,” Carney said.

    Carney also added that Canada opposes tariffs over Greenland.

    Trump’s speech is expected to focus largely on housing, and following his address, he will meet with leaders at the forum, according to the White House.

    Home sales in the U.S. are at a 30-year low with rising prices. Reports show elevated mortgage rates are keeping prospective home buyers out of the market. Rent, for several years, has been the largest contributor to inflation.

    This comes as Trump announced his plan to buy $200 billion in mortgage securities to help lower interest rates on home loans. He’s also called for a ban on large financial companies buying houses.

    Keep watching for the latest from the Washington News Bureau:

    s

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  • Supreme Court releases three unanimous opinions, does not rule on tariffs yet

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    The Supreme Court released three unanimous opinions on Tuesday, but has yet to release one on a case about President Trump’s tariffs. CBS News legal contributor Jessica Levinson has more details.

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  • Trump takes on angry European leaders over Greenland with memes and published text messages

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    President Trump will face shocked European leaders in Davos, Switzerland, as he remains defiant in his stance on Greenland. CBS News’ Holly Williams reports.

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  • 1/19: The Takeout with Major Garrett

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    1/19: The Takeout with Major Garrett – CBS News









































    Watch CBS News



    Minneapolis ICE protests continue in face of Trump’s Insurrection Act threat; Indiana and Miami students reflect on lead-up to football championship.

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  • U.S. Steel CEO says Trump’s “golden share” won’t stop company from “doing what we want to do”

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    Nippon Steel’s acquisition of U.S. Steel came with an unusual provision, a so-called “golden share” that gives President Trump the power to approve some major corporate decisions. U.S. Steel CEO David Burritt talked to “CBS Evening News” anchor Tony Dokoupil about that golden share and the future of the company.

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  • Trump ties his stance on Greenland to not getting Nobel Peace Prize, European officials say

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    President Donald Trump linked his aggressive stance on Greenland to last year’s decision not to award him the Nobel Peace Prize, telling Norway’s prime minister that he no longer felt “an obligation to think purely of Peace,” two European officials said Monday.Trump’s message to Jonas Gahr Støre appears to ratchet up a standoff between Washington and its closest allies over his threats to take over Greenland, a self-governing territory of NATO member Denmark. On Saturday, Trump announced a 10% import tax starting in February on goods from eight nations that have rallied around Denmark and Greenland, including Norway.Those countries issued a forceful rebuke. But British Prime Minister Keir Starmer sought to de-escalate tensions on Monday. While the White House has not ruled taking control of the strategic Arctic island by force, Starmer said he did not believe military action would occur.”I think this can be resolved and should be resolved through calm discussion,” he said.Still, the American leader’s message to Gahr Støre could further fracture a U.S.-European relationship already strained by differences over how to end the nearly four-year war in Ukraine, previous rounds of tariffs, military spending and migration policy.In a sign of how tensions have increased in recent days, thousands of Greenlanders marched over the weekend in protest of any effort to take over their island. Greenland Prime Minister Jens-Frederik Nielsen said in a Facebook post Monday that the tariff threats would not change their stance.“We will not be pressured,” he wrote.Meanwhile, Naaja Nathanielsen, Greenland’s minister for business, minerals, energy, justice and equality, told The Associated Press that she was moved by the quick response of allies to the tariff threat and said it showed that countries realize “this is about more than Greenland.”“I think a lot of countries are afraid that if they let Greenland go, what would be next?”Trump sends a message to the Norwegian leaderAccording to two European officials, Trump’s message to Gahr Støre read in part: “Considering your Country decided not to give me the Nobel Peace Prize for having stopped 8 Wars PLUS, I no longer feel an obligation to think purely of Peace, although it will always be predominant, but can now think about what is good and proper for the United States of America.”It concluded: “The World is not secure unless we have Complete and Total Control of Greenland.”The officials, who were not authorized to comment publicly and spoke on condition of anonymity, said it had been forwarded to multiple European ambassadors in Washington. PBS first reported on the content of Trump’s note.U.S. Treasury Secretary Scott Bessent defended the president’s approach in Greenland during a brief Q&A with reporters in Davos, Switzerland, which is hosting the World Economic Forum meeting this week.“I think it’s a complete canard that the president would be doing this because of the Nobel,” Bessent said, immediately after saying he did not “know anything about the president’s letter to Norway.”Bessent insisted Trump “is looking at Greenland as a strategic asset for the United States,” adding that “we are not going to outsource our hemispheric security to anyone else.”The White House did not respond to questions about the message or the context for Trump sending it.Gahr Støre confirmed Monday that he had received a text message the day before from Trump but did not release its contents.The Norwegian leader said Trump’s message was a reply to an earlier missive sent on behalf of himself and Finnish President Alexander Stubb, in which they conveyed their opposition to the tariff announcement, pointed to a need to de-escalate, and proposed a telephone conversation among the three leaders.“Norway’s position on Greenland is clear. Greenland is a part of the Kingdom of Denmark, and Norway fully supports the Kingdom of Denmark on this matter,” the Norwegian leader said in a statement. “As regards the Nobel Peace Prize, I have clearly explained, including to President Trump what is well known, the prize is awarded by an independent Nobel Committee and not the Norwegian Government.”He told TV2 Norway that he hadn’t responded to the message, but “I still believe it’s wise to talk,” and he hopes to talk with Trump in Davos this week.The Norwegian Nobel Committee is an independent body whose five members are appointed by the Norwegian Parliament.Trump has openly coveted the peace prize, which the committee awarded to Venezuelan opposition leader María Corina Machado last year. Last week, Machado presented her Nobel medal to Trump, who said he planned to keep it though the committee said the prize can’t be revoked, transferred or shared with others.Starmer says a trade war is in no one’s interestIn his latest threat of tariffs, Trump indicated they would be retaliation for last week’s deployment of symbolic numbers of troops from the European countries to Greenland — though he also suggested that he was using the tariffs as leverage to negotiate with Denmark.European governments said that the troops traveled to the island to assess Arctic security, part of a response to Trump’s own concerns about interference from Russia and China.Starmer on Monday called Trump’s threat of tariffs “completely wrong” and said that a trade war is in no one’s interest.He added that “being pragmatic does not mean being passive and partnership does not mean abandoning principles.”Six of the eight countries targeted are part of the 27-member European Union, which operates as a single economic zone in terms of trade. European Council President Antonio Costa said Sunday that the bloc’s leaders expressed “readiness to defend ourselves against any form of coercion.” He announced a summit for Thursday evening.Starmer indicated that Britain, which is not part of the EU, is not planning to consider retaliatory tariffs.“My focus is on making sure we don’t get to that stage,” he said.Denmark’s defense minister and Greenland’s foreign minister are expected to meet NATO Secretary-General Mark Rutte in Brussels on Monday, a meeting that was planned before the latest escalation.___Associated Press writers Josh Boak in West Palm Beach, Florida; Emma Burrows in Nuuk, Greenland; and Bill Barrow in Atlanta contributed to this report.

    President Donald Trump linked his aggressive stance on Greenland to last year’s decision not to award him the Nobel Peace Prize, telling Norway’s prime minister that he no longer felt “an obligation to think purely of Peace,” two European officials said Monday.

    Trump’s message to Jonas Gahr Støre appears to ratchet up a standoff between Washington and its closest allies over his threats to take over Greenland, a self-governing territory of NATO member Denmark. On Saturday, Trump announced a 10% import tax starting in February on goods from eight nations that have rallied around Denmark and Greenland, including Norway.

    Those countries issued a forceful rebuke. But British Prime Minister Keir Starmer sought to de-escalate tensions on Monday. While the White House has not ruled taking control of the strategic Arctic island by force, Starmer said he did not believe military action would occur.

    “I think this can be resolved and should be resolved through calm discussion,” he said.

    Still, the American leader’s message to Gahr Støre could further fracture a U.S.-European relationship already strained by differences over how to end the nearly four-year war in Ukraine, previous rounds of tariffs, military spending and migration policy.

    In a sign of how tensions have increased in recent days, thousands of Greenlanders marched over the weekend in protest of any effort to take over their island. Greenland Prime Minister Jens-Frederik Nielsen said in a Facebook post Monday that the tariff threats would not change their stance.

    “We will not be pressured,” he wrote.

    Meanwhile, Naaja Nathanielsen, Greenland’s minister for business, minerals, energy, justice and equality, told The Associated Press that she was moved by the quick response of allies to the tariff threat and said it showed that countries realize “this is about more than Greenland.”

    “I think a lot of countries are afraid that if they let Greenland go, what would be next?”

    Trump sends a message to the Norwegian leader

    According to two European officials, Trump’s message to Gahr Støre read in part: “Considering your Country decided not to give me the Nobel Peace Prize for having stopped 8 Wars PLUS, I no longer feel an obligation to think purely of Peace, although it will always be predominant, but can now think about what is good and proper for the United States of America.”

    It concluded: “The World is not secure unless we have Complete and Total Control of Greenland.”

    The officials, who were not authorized to comment publicly and spoke on condition of anonymity, said it had been forwarded to multiple European ambassadors in Washington. PBS first reported on the content of Trump’s note.

    U.S. Treasury Secretary Scott Bessent defended the president’s approach in Greenland during a brief Q&A with reporters in Davos, Switzerland, which is hosting the World Economic Forum meeting this week.

    “I think it’s a complete canard that the president would be doing this because of the Nobel,” Bessent said, immediately after saying he did not “know anything about the president’s letter to Norway.”

    Bessent insisted Trump “is looking at Greenland as a strategic asset for the United States,” adding that “we are not going to outsource our hemispheric security to anyone else.”

    The White House did not respond to questions about the message or the context for Trump sending it.

    Gahr Støre confirmed Monday that he had received a text message the day before from Trump but did not release its contents.

    The Norwegian leader said Trump’s message was a reply to an earlier missive sent on behalf of himself and Finnish President Alexander Stubb, in which they conveyed their opposition to the tariff announcement, pointed to a need to de-escalate, and proposed a telephone conversation among the three leaders.

    “Norway’s position on Greenland is clear. Greenland is a part of the Kingdom of Denmark, and Norway fully supports the Kingdom of Denmark on this matter,” the Norwegian leader said in a statement. “As regards the Nobel Peace Prize, I have clearly explained, including to President Trump what is well known, the prize is awarded by an independent Nobel Committee and not the Norwegian Government.”

    He told TV2 Norway that he hadn’t responded to the message, but “I still believe it’s wise to talk,” and he hopes to talk with Trump in Davos this week.

    The Norwegian Nobel Committee is an independent body whose five members are appointed by the Norwegian Parliament.

    Trump has openly coveted the peace prize, which the committee awarded to Venezuelan opposition leader María Corina Machado last year. Last week, Machado presented her Nobel medal to Trump, who said he planned to keep it though the committee said the prize can’t be revoked, transferred or shared with others.

    Starmer says a trade war is in no one’s interest

    In his latest threat of tariffs, Trump indicated they would be retaliation for last week’s deployment of symbolic numbers of troops from the European countries to Greenland — though he also suggested that he was using the tariffs as leverage to negotiate with Denmark.

    European governments said that the troops traveled to the island to assess Arctic security, part of a response to Trump’s own concerns about interference from Russia and China.

    Starmer on Monday called Trump’s threat of tariffs “completely wrong” and said that a trade war is in no one’s interest.

    He added that “being pragmatic does not mean being passive and partnership does not mean abandoning principles.”

    Six of the eight countries targeted are part of the 27-member European Union, which operates as a single economic zone in terms of trade. European Council President Antonio Costa said Sunday that the bloc’s leaders expressed “readiness to defend ourselves against any form of coercion.” He announced a summit for Thursday evening.

    Starmer indicated that Britain, which is not part of the EU, is not planning to consider retaliatory tariffs.

    “My focus is on making sure we don’t get to that stage,” he said.

    Denmark’s defense minister and Greenland’s foreign minister are expected to meet NATO Secretary-General Mark Rutte in Brussels on Monday, a meeting that was planned before the latest escalation.

    ___

    Associated Press writers Josh Boak in West Palm Beach, Florida; Emma Burrows in Nuuk, Greenland; and Bill Barrow in Atlanta contributed to this report.

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