Donald Trump Greenland Acquisition Strategy: Davos 2026 Speech and Historical Fact-Check

He won't use force, but he won't take 'no' for an answer. On January 21, 2026, President Donald Trump signaled to global leaders in Davos that his ambition to acquire Greenland remains unwavering. Citing its vital position between the US, Russia, and China, Trump framed the territory as a non-negotiable strategic asset, relying on his signature tariff-based negotiation tactics.

Fact-Checking the US Historical Claim over Greenland

During his address, Trump asserted that the US "gave Greenland back to Denmark" after World War II, claiming the US had held it as a "trustee." While it's true that the US assumed responsibility for Greenland's defense during the war to prevent an enemy foothold, legal experts and historians note that the US never possessed the nation. Denmark has held valid sovereignty since the 1720s, a status reaffirmed by international courts in 1933.

The Greenland-Iceland Mix-up and Market Volatility

Market reactions were swift and negative. US stock markets fell by approximately 2% following Trump's initial comments on Greenland. However, in a confusing turn during his Davos speech, Trump repeatedly blamed Iceland for the economic dip. "Iceland has already cost us a lot of money," Trump stated, despite having made no acquisition remarks regarding the independent nation of 400,000 residents.

The confusion has caused diplomatic jitters in Reykjavik. Analysts suggest that while Iceland has traditionally tried to stay "under the radar" in US foreign policy, it's now being pulled into the spotlight by the Greenland controversy. The White House later attempted to clarify that the President was referring to the territory as a "piece of ice," but the transcript shows distinct mentions of the country Iceland.