People walk along a street next to the US Consulate in Nuuk, Greenland, January 21, 2026. File Image/Reuters
Explainers
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Firstpost22-01-2026, 14:32

Trump's Greenland Retreat: "Taco" Moment or Strategic Shift?

  • President Trump abruptly abandoned tariff threats against European allies and ruled out military force for Greenland, capping a turbulent episode.
  • The incident, culminating at the World Economic Forum in Davos, exposed NATO fractures and highlighted Trump's volatile negotiating style.
  • Critics and market analysts label Trump's pattern of issuing ultimatums and then retreating as "Taco" (Trump Always Chickens Out).
  • Trump initially linked tariffs to his demand for Greenland, citing Arctic security against Russia and China, despite existing US military presence.
  • A potential compromise involves Denmark and NATO expanding the American military footprint on Greenland, though details remain unclear.

Why It Matters: Trump's reversal on Greenland tariffs and military action sparks debate over his "Taco" negotiating style.

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