Client Update - 23rd January 2026

European leaders in Brussels breathed a collective sigh of relief this week after Donald Trump suddenly decided not to slap new tariffs on them or try to “buy” Greenland. It was, in their eyes, the diplomatic equivalent of waking up from a bad dream — one that could have wrecked decades of transatlantic friendship.

Trump’s original plan to grab Greenland and punish Europe with trade barriers had shocked leaders from Copenhagen to Berlin at this week’s gathering in Davos. The EU even started drawing up plans for tit for tat tariffs, mainly focussed on technology. Then, just as tensions peaked, the U.S. president changed course. He dropped the Greenland talk and suggested instead that America might simply station more troops on the island. Crisis (mostly) averted. Oh, and something about raiding their rare earth minerals, but that was not really the reason in the first place, surely.

At an emergency EU summit, António Costa, the European Council president, tried to strike a soothing tone. He reminded everyone that the U.S. and Europe have been partners “forged by history,” and that allies should talk like friends — not rivals. His message was simple: keep calm, stay united, and get trade relations back on track. The problem is that Europe is not very good at standing together. At least French President Macron was able to strike a strong tone, unlike UK Prime Minister Starmer. With so much of the UK defence system inextricably linked to US supplies and maintenance, it appears that Trump has something of a stranglehold over Sir Keir Starmer, and he does not seem keen to risk it.

Denmark’s Prime Minister Mette Frederiksen, who had personally faced Trump’s Greenland talk, couldn’t resist pointing out that European unity pays off. “When we stand together and stay strong, the results show,” she said on her way into the meeting. Frederiksen also floated a new idea: why not a permanent NATO presence in the Arctic, including Greenland? Her comment hinted at a bigger truth — Europe wants to look less like America’s junior partner and more like a fully grown power. Poland’s Donald Tusk chimed in too, drawing a sharp line between “leadership” and “domination.” His point? America can lead, yes, but it doesn’t need to boss everyone around. For allies who’ve relied on NATO for eighty years, Trump’s unpredictable style has been a wake up call.

As if Wednesday wasn’t eventful enough, Ukraine’s President Volodymyr Zelenskyy added some fire from afar. Speaking earlier at Davos, he scolded Europe for not “taking the lead in defending freedom” as Russia’s war grinds on. It was a bold move considering Europe’s near €200 billion in aid to Kyiv since 2022. But Zelenskyy’s frustration was clear: Europe still waits for the U.S. to give the green light before acting decisively.

Almost five years into the war, Russia shows no sign of slowing down. Europe, America, and Ukraine keep talking about peace, but progress feels distant. For now, though, EU leaders seem happy enough just to have survived another round of Trump made drama — and to have learned that unity, at least sometimes, works.

After a wobble, stock markets got their mojo back as soon as Donald Trump dropped his tariff threat and ruled out using force to seize Greenland and chip stocks moved higher once more after Nvidia CEO Jensen Huang said the global AI buildout will require trillions in investment. Investors aren’t spooked by sky-high valuations. With interest rates gradually falling, the next few months for markets look volatile but have plenty of tailwinds to take them higher – as long as Trump stays out of the spotlight. Do have a good weekend.