Tag - Davos

Trump’s Greenland gambit could undermine critical minerals meeting
The Trump administration wants to work with traditional allies to secure new supplies of critical minerals. But months of aggression toward allies, culminating with since-aborted threats to seize Greenland, have left many cool to the overtures. While the State Department has drawn a lengthy list of participating countries for its first Critical Minerals Ministerial scheduled for Wednesday, a number of those attending are hesitant to commit to partnering with the U.S. in creating a supply chain that bypasses China’s current chokehold on those materials, according to five Washington-based diplomats of countries invited to or attending the event. State Department cables obtained by POLITICO also show wariness among some countries about signing onto a framework agreement pledging joint cooperation in sourcing and processing critical minerals. Representatives from more than 50 countries are expected to attend the meeting, according to the State Department — all gathered to discuss the creation of tech supply chains that can rival Beijing’s. But the meeting comes just two weeks since President Donald Trump took to the stage at Davos to call on fellow NATO member Denmark to allow a U.S. takeover of Greenland, and that isn’t sitting well. “We all need access to critical minerals, but the furor over Greenland is going to be the elephant in the room,” said a European diplomat. In the immediate run-up to the event there’s “not a great deal of interest from the European side,” the person added. The individual and others were granted anonymity to discuss sensitive diplomatic relationships. Their concerns underscore how international dismay at the Trump administration’s foreign policy and trade actions may kneecap its other global priorities. The Trump administration had had some success over the past two months rallying countries to support U.S. efforts to create secure supply chains for critical minerals, including a major multilateral agreement called the Pax Silica Declaration. Now those gains could be at risk. Secretary of State Marco Rubio wants foreign countries to partner with the U.S. in creating a supply chain for the 60 minerals (including rare earths) that the U.S. Geological Survey deems “vital to the U.S. economy and national security that face potential risks from disrupted supply chains.” They include antimony, used to produce munitions; samarium, which goes into aircraft engines; and germanium, which is essential to fiber-optics. The administration also launched a $12 billion joint public-private sector “strategic critical minerals stockpile” for U.S. manufacturers, a White House official said Monday. Trump has backed away from his threats of possibly deploying the U.S. military to seize Greenland from Denmark. But at Davos he demanded “immediate negotiations” with Copenhagen to transfer Greenland’s sovereignty to the U.S. That makes some EU officials leery of administration initiatives that require cooperation and trust. “We are all very wary,” said a second European diplomat. Rubio’s critical minerals framework “will not be an easy sell until there is final clarity on Greenland.” Trump compounded the damage to relations with NATO countries on Jan. 22 when he accused member country troops that deployed to support U.S. forces in Afghanistan from 2001 to 2021 of having shirked combat duty. “The White House really messed up with Greenland and Davos,” a third European diplomat said. “They may have underestimated how much that would have an impact.” The Trump administration needs the critical minerals deals to go through. The U.S. has been scrambling to find alternative supply lines for a group of minerals called rare earths since Beijing temporarily cut the U.S. off from its supply last year. China — which has a near-monopoly on rare earths — relented in the trade truce that Trump brokered with China’s leader Xi Jinping in South Korea in October. The administration is betting that foreign government officials that attend Wednesday’s event also want alternative sources to those materials. “The United States and the countries attending recognize that reliable supply chains are indispensable to our mutual economic and national security and that we must work together to address these issues in this vital sector,” the State Department statement said in a statement. The administration has been expressing confidence that it will secure critical minerals partnerships with the countries attending the ministerial, despite their concerns over Trump’s bellicose policy. “There is a commonality here around countering China,” Ruth Perry, the State Department’s acting principal deputy assistant secretary for ocean, fisheries and polar affairs, said at an industry event on offshore critical minerals in Washington last week. “Many of these countries understand the urgency.” Speaking at a White House event Monday, Interior Secretary Doug Burgum indicated that 11 nations would sign on to a critical minerals framework with the United States this week and another 20 are considering doing so. Greenland has rich deposits of rare earths and other minerals. But Denmark isn’t sending any representatives to the ministerial, according to the person familiar with the event’s planning. Trump said last month that a framework agreement he struck with NATO over Greenland’s future included U.S. access to the island’s minerals. Greenland’s harsh climate and lack of infrastructure in its interior makes the extraction of those materials highly challenging. Concern about the longer term economic and geostrategic risks of turning away from Washington in favor of closer ties with Beijing — despite the Trump administration’s unpredictability — may work in Rubio’s favor on Wednesday. “We still want to work on issues where our viewpoints align,” an Asian diplomat said. “Critical minerals, energy and defense are some areas where there is hope for positive movement.” State Department cables obtained by POLITICO show the administration is leaning on ministerial participants to sign on to a nonbinding framework agreement to ensure U.S. access to critical minerals. The framework establishes standards for government and private investment in areas including mining, processing and recycling, along with price guarantees to protect producers from competitors’ unfair trade policies. The basic template of the agreement being shared with other countries mirrors language in frameworks sealed with Australia and Japan and memorandums of understanding inked with Thailand and Malaysia last year. Enthusiasm for the framework varies. The Philippine and Polish governments have both agreed to the framework text, according to cables from Manila on Jan. 22 and Warsaw on Jan. 26. Romania is interested but “proposed edits to the draft MOU framework,” a cable dated Jan. 16 said. As of Jan. 22 India was noncommittal, telling U.S. diplomats that New Delhi “could be interested in exploring a memorandum of understanding in the future.” European Union members Finland and Germany both expressed reluctance to sign on without clarity on how the framework aligns with wider EU trade policies. A cable dated Jan. 15 said Finland “prefers to observe progress in the EU-U.S. discussions before engaging in substantive bilateral critical mineral framework negotiations.” Berlin also has concerns that the initiative may reap “potential retaliation from China,” according to a cable dated Jan. 16. Trump’s threats over the past two weeks to impose 100 percent tariffs on Canada for cutting a trade deal with China and 25 percent tariffs on South Korea for allegedly slow-walking legislative approval of its U.S. trade agreement are also denting enthusiasm for the U.S. critical minerals initiative. Those levies “have introduced some uncertainty, which naturally leads countries to proceed pragmatically and keep their options open,” a second Asian diplomat said. There are also doubts whether Trump will give the initiative the long-term backing it will require for success. “There’s a sense that this could end up being a TACO too,” a Latin American diplomat said, using shorthand for Trump’s tendency to make big threats or announcements that ultimately fizzle. Analysts, too, argue it’s unlikely the administration will be able to secure any deals amid the fallout from Davos and Trump’s tariff barrages. “We’re very skeptical on the interest and aptitude and trust in trade counterparties right now,” said John Miller, an energy analyst at TD Cowen who tracks critical minerals. “A lot of trading partners are very much in a wait-and-see perspective at this point saying, ‘Where’s Trump really going to go with this?’” And more unpredictability or hostility by the Trump administration toward longtime allies could push them to pursue critical mineral sourcing arrangements that exclude Washington. “The alternative is that these other countries will go the Mark Carney route of the middle powers, cooperating among themselves quietly, not necessarily going out there and saying, ‘Hey, we’re cutting out the U.S.,’ but that these things just start to crop up,” said Jonathan Czin, a former China analyst at the CIA now at the Brookings Institution. “Which will make it more challenging and allow Beijing to play divide and conquer over the long term.” Felicia Schwartz contributed to this report.
Defense
Energy
Foreign Affairs
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Europe may want to cool its Carney fever
Yanmei Xie is senior associate fellow at the Mercator Institute for China Studies. After Canadian Prime Minister Mark Carney spoke at Davos last week, a whole continent contracted leadership envy. Calling the rules-based order — which Washington proselytized for decades before stomping on — a mirage, Carney gave his country’s neighboring hegemonic bully a rhetorical middle finger, and Europeans promptly swooned. But before the bloc’s politicians rush to emulate him, it may be worth cooling the Carney fever. Appearing both steely and smooth in his Davos speech, Carney warned middle powers that “when we only negotiate bilaterally with a hegemon, we negotiate from weakness.” Perhaps this was in reference to the crass daily coercion Canada has been enduring from the U.S. administration. But perhaps he was talking about the subtler asymmetry he experienced just days before in Beijing. In contrast to his defiance in Switzerland, Carney was ingratiating during his China visit. He signed Canada up for a “new strategic partnership” in preparation for an emerging “new world order,” and lauded Chinese leader Xi Jinping as a fellow defender of multilateralism. The visit also produced a cars-for-canola deal, which will see Canada slash tariffs on Chinese electric vehicles from 100 percent to 6.1 percent, and lift the import cap to 49,000 cars per year. In return, China will cut duties on Canadian canola seeds from 84 percent to 15 percent. In time, Ottawa also expects Beijing will reduce tariffs on Canadian lobsters, crabs and peas later this year and purchase more Canadian oil and perhaps gas, too. The agreement to launch a Ministerial Energy Dialogue will surely pave the way for eventual deals. These productive exchanges eventually moved Carney to declare Beijing a “more predictable” trade partner than Washington. And who can blame him? He was simply stating the obvious — after all, China isn’t threatening Canada with annexation. But one is tempted to wonder if he would have needed to flatter quite so much in China if his country still possessed some of the world’s leading technologies. The truth is, Canada’s oil and gas industry probably shouldn’t really be holding its breath. Chinese officials typically offer serious consideration rather than outright rejection out of politeness — just ask Russia, which has spent decades in dialogue with Beijing over a pipeline meant to replace Europe as a natural gas market. The cars-for-canola deal also carries a certain irony: Canada is importing the very technology that makes fossil fuels obsolete. China is electrifying at dizzying speed, with the International Energy Agency projecting its oil consumption will peak as early as next year thanks to “extraordinary” electric vehicle sales. That means Beijing probably isn’t desperate for new foreign suppliers of hydrocarbons, and the ministerial dialogue will likely drag on inconclusively — albeit courteously — well into the future. This state of Sino-Canadian trade can be seen as classic comparative advantage at work: China is good at making things, and Canada has abundant primary commodities. But in the not-so-distant past, it was Canadian companies that were selling nuclear reactors, telecom equipment, aircraft and bullet trains to China. Yet today, many of these once globe-spanning Canadian high-tech manufacturers have either exited the scene or lead a much-reduced existence. Somewhere in this trading history lies a cautionary tale for Europe. Deindustrialization can have its own self-reinforcing momentum. As a country’s economic composition changes, so does its political economy. When producers of goods disappear, so does their political influence. And the center of lobbying gravity shifts toward downstream users and consumers who prefer readily available imports. Europe’s indigenous solar manufacturers have been driven to near extinction by much cheaper Chinese products | STR/AFP via Getty Images Europe already has its own version of this story: Its indigenous solar manufacturers have been driven to near extinction by much cheaper Chinese products over the span of two decades. Currently, its solar industry is dominated by installers and operators who favor cheap imports and oppose trade defense. Simply put, Carney’s cars-for-canola deal is a salve for Canadian consumers and commodity producers, but it’s also industrial policy in reverse. In overly simplified terms, industrial policy is about encouraging exports of finished products over raw materials and discouraging the opposite in order to build domestic value-added capacity and productivity. But while Canada can, perhaps, make do without industry — as Carney put it in Davos, his ambition is to run “an energy superpower” — Europe doesn’t have that option. Agri-food and extractive sectors aren’t enough to stand up the continent’s economy — even with the likes of tourism and luxury goods thrown in. China currently exports more than twice as much to the EU than it imports. In container terms, the imbalance widens to 4-to-1. Meanwhile, Goldman Sachs estimates Chinese exports will shave 0.2 percentage point or more of GDP growth in Germany, Spain and Italy each year through 2029. And according to the European Central Bank, cars, chemicals, electric equipment and machinery — sectors that form Europe’s industrial backbone — face the most severe job losses from China trade shock. Europe shares Canada’s plight in dealing with the U.S., which currently isn’t just an unreliable trade partner but also an ally turned imperialist. This is why Carney’s speech resonates. But U.S. protectionism has only made China’s mercantilism a more acute challenge for Europe, as the U.S. resists the bloc’s exports and Chinese goods keep pouring into Europe in greater quantities at lower prices. European leaders would be mistaken to look for trade relief in China as Carney does, and bargain away the continent’s industrial capacity in the process. Whether it’s to resist an expansionist Russia or an imperial U.S., Europe still needs to hold on to its manufacturing base.
Energy
Tariffs
Imports
Trade
Trade Agreements
Trump is pressuring Cuba. It’s putting Mexico in a tough spot.
U.S. President Donald Trump’s increasingly overt attempts to bring down the Cuban government are forcing Mexico’s President Claudia Sheinbaum into a delicate diplomatic dance. Mexico is the U.S.’s largest trading partner. It is also the primary supplier of oil to Cuba since the U.S. seized control of Venezuela’s crude. Now, Sheinbaum must manage her relationship with a mercurial Trump, who has at times both praised her leadership and threatened to send the U.S. military into her country to combat drug trafficking — all while appeasing her left-wing party Morena, factions of which have historically aligned themselves with Cuba’s communist regime. That balance became even more difficult for Sheinbaum this week following reports that Mexico’s state-run oil company, Pemex, paused a shipment of oil headed for Cuba, which is grappling with shortages following the U.S. military action earlier this month in Venezuela. Asked about the suspension, the Mexican president said only that oil shipments are a “sovereign” decision and that future action will be taken on a “humanitarian” basis. On Thursday, Trump ramped up the pressure, declared a national emergency over what he couched as threats posed by the Cuban government and authorized the use of new tariffs against any country that sells or provides oil to the island. The order gives the administration broad discretion to impose duties on imports from countries deemed to be supplying Cuba, dramatically raising the stakes for Mexico as it weighs how far it can go without triggering economic retaliation from Washington — or worse. “It’s the proverbial shit hitting the fan in terms of the spillover effects that would have,” said Arturo Sarukhán, former Mexican ambassador to the U.S., referring to the possibility of a Pemex tanker being intercepted. Sheinbaum still refuses to hit back too hard against Trump, preferring to speak publicly in diplomatic platitudes even as she faces new pressure. Her posture stands in marked contrast to Canada’s Mark Carney, whose speech at Davos, urging world leaders to stand up to Trump, went viral and drew a swift rebuke from the White House and threats of new tariffs. But the latest episode is characteristic of Sheinbaum’s approach to Trump over the last year — one that has, so far, helped her avoid the kinds of headline-grabbing public ruptures that have plagued Carney, Ukrainian President Volodymyr Zelenskyy and French President Emmanuel Macron. Still, former Mexican officials say Trump’s threats — though not specific to Mexico — have triggered quiet debate inside the Mexican government over how much risk Sheinbaum can afford to absorb and how hard she should push back. “My sense is that right now, at least because of what’s at stake in the counter-narcotics and law enforcement agenda bilaterally, I think that neither government right now wants to turn this into a casus belli,” Sarukhán added. “But I do think that in the last weeks, the U.S. pressure on Mexico has risen to such a degree where you do have a debate inside the Mexican government as to what the hell do we do with this issue?” A White House official, granted anonymity to speak candidly about the administration’s approach, said that Trump is “addressing the depredations of the communist Cuban regime by taking decisive action to hold the Cuban regime accountable for its support of hostile actors, terrorism, and regional instability that endanger American security and foreign policy.” “As the President stated, Cuba is now failing on its own volition,” the official added. “Cuba’s rulers have had a major setback with the Maduro regime that they are responsible for propping up.” Sheinbaum, meanwhile, responded to Trump’s latest executive order during her Friday press conference by warning that it could “trigger a large-scale humanitarian crisis, directly affecting hospitals, food supplies, and other basic services for the Cuban people.” “Mexico will pursue different alternatives, while clearly defending the country’s interests, to provide humanitarian assistance to the Cuban people, who are going through a difficult moment, in line with our tradition of solidarity and respect for international norms,” Sheinbaum said. The Mexican embassy in Washington declined further comment. Cuba’s Foreign Minister Bruno Rodriguez, in a post on X, accused the U.S. of “resorting to blackmail and coercion in an attempt to make other countries to join its universally condemned blockade policy against Cuba.” The pressure on Sheinbaum to respond has collided with real political constraints at home. Morena has long maintained ideological and historical ties to Cuba, and Sheinbaum faces criticism from within her coalition over any move that could be seen as abandoning Havana. At the same time, she has come under growing domestic scrutiny over why Mexico should continue supplying oil abroad as fuel prices and energy concerns persist at home, making the “humanitarian” framing both a diplomatic shield and a political necessity. Amid the controversy over the oil shipment, Trump and Sheinbaum spoke by phone Thursday morning, with Trump describing the conversation afterward as “very productive” and praising Sheinbaum as a “wonderful and highly intelligent Leader.” Sheinbaum’s remarks after the call point to how she is navigating the issue through ambiguity rather than direct confrontation, noting that the two did not discuss Cuba. She described it as a “productive and cordial conversation” and that the two leaders would “continue to make progress on trade issues and on the bilateral relationship.” With the upcoming review of the U.S.-Mexico-Canada Agreement on trade looming, even the appearance of defying Trump’s push to cut off Cuba’s oil lifelines carries the potential for economic and diplomatic blowback. It also could undo the quiet partnership the U.S. and Mexico have struck on border security and drug trafficking issues. Gerónimo Gutiérrez, who served as Mexican ambassador to the U.S. during the first Trump administration, described Sheinbaum’s approach as “squish and muddle through.” “She obviously is trying to tread carefully with Trump. She doesn’t want to irritate him with this matter,” Gutiérrez said, adding that “she knows that it’s a problem.” Meanwhile, Cuba’s vulnerability has only deepened since the collapse of Venezuela’s oil support following this month’s U.S. operation that ousted President Nicolás Maduro. For years, Venezuelan crude served as a lifeline for the island, a gap Mexico has increasingly helped fill, putting the country squarely in Washington’s crosshairs as Trump squeezes Havana. With fuel shortages in Cuba triggering rolling blackouts and deepening economic distress, former U.S. officials who served in Cuba and regional analysts warn that Trump’s push to choke off remaining oil supplies could hasten a broader collapse — even as there is little clarity about how Washington would manage the political, humanitarian or regional fallout if the island tips over the edge. Trump has openly suggested that outcome is inevitable, telling reporters in Iowa on Tuesday that “Cuba will be failing pretty soon,” even as he pushed back on Thursday that the idea he was trying to “choke off” the country. “The word ‘choke off’ is awfully tough,” Trump said. “It looks like it’s not something that’s going to be able to survive. I think Cuba will not be able to survive.” The administration, however, has offered few details about what would come next, and Latin American analysts warn that the U.S. and Mexico are likely to face an influx of migrants — including to Florida and the Yucatán Peninsula — seeking refuge should Cuba collapse. There is no evidence that the Trump administration has formally asked Mexico to halt oil shipments to Cuba. Trump’s executive order leaves it to the president’s Cabinet to determine whether a country is supplying oil to Cuba and the rate at which it should be tariffed — an unusual deferral of power for a president for whom tariffs are a favorite negotiating tool. But former U.S. officials say that absence of an explicit demand to Mexico does not mean the pressure is theoretical. Lawrence Gumbiner, who served as chargé d’affaires at the U.S. embassy in Havana during the first Trump administration, believes Washington would be far more likely to lean on economic pressure than the kind of military force it has used to seize Venezuelan oil tankers. At the same time, the administration’s push on Venezuela began with a similar executive order last spring. “There’s no doubt that the U.S. is telling Mexico to just stop it,” Gumbiner said. “I think there’s a much slimmer chance that we would engage our military to actually stop Mexican oil from coming through. That would be a last resort. But with this administration you cannot completely discount the possibility of a physical blockade of the island if they decide that it’s the final step in strangling the island.”
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Confrontational politics is here to stay. It’s time Europe got on board.
Jamie Dettmer is opinion editor and a foreign affairs columnist at POLITICO Europe. Today’s angry and discombobulating geopolitical landscape is giving rise to noticeably more acrimonious diplomatic exchanges than seen in preceding decades — even sharper than during U.S. President Donald Trump’s first term. This is likely just a reflection of the times we live in: Roiled by shocks and uncertainty, even world leaders and their envoys are on edge. And social media doesn’t help keep exchanges calm and respectful either. Measured speech doesn’t go viral. If you want attention, be disparaging and abrasive. Let’s take Canadian Prime Minister Mark Carney’s carefully crafted speech at Davos last week. Carney earned a standing ovation from global and corporate leaders as he bewailed the unfolding great-power rivalry, urging “middle powers” to act together “because if we’re not at the table, we’re on the menu.” Yet, it was Trump’s free-wheeling, sharp-edged speech with its personal criticism of fellow Western leaders — including a jab at French President Emmanuel Macron — that roared on social media. This shift away from traditional diplomatic etiquette toward more confrontational, seemingly no-nonsense and aggressive public-facing communication is very much in keeping with populist styles of leadership. And it’s now shaping an era where antagonistic communication isn’t just tolerated but celebrated and applauded by many. Trump is very much a man of his times. And it’s time Europe finally caught on. Aside from Trump, Russian President Vladimir Putin is also often known to use colloquial and crude language to attack Western and Ukrainian leaders — though noticeably, he never uses such language with Trump. In an address last month, Putin referred to European leaders as podsvinki — little pigs. And before invading Ukraine in February 2022, he used a vulgar Russian rhyme to insinuate Ukrainian President Volodymyr Zelenskyy needed to be raped. China, too, has been noticeably more menacing in its diplomatic speech in recent years — though it tends to eschew personal invective. The shift began around 2019, when Chinese Foreign Minister Wang Yi instructed envoys to display a stronger “fighting spirit” to defend Beijing from supposed Western bullying. The abrasive style led to the more aggressive envoys being dubbed “wolf warriors,” after a blockbuster movie in which Chinese commandos vanquish American mercenaries. But driving the trend are Trump and his aides, who can go toe-to-toe with anyone when it comes to put-downs, slurs or retaliation. And if met with pushback, they simply escalate. Hence the avuncular counsel of U.S. Treasury Secretary Scott Bessent to Europeans on the Greenland-related tariff threats last week: “Sit back, take a deep breath, do not retaliate.” But here’s the curious thing: While the Russians and Chinese use such language to target their foes, Trump and his senior aides reserve much of their invective for supposed allies, namely Europe with Canada thrown in for good measure. And they’re utterly relentless in doing so — far more than during his first term, when there were still some more traditionally minded folks in the White House to temper or walk back the rhetoric. This all seemed to reach its pinnacle in Davos last week, where it seemed belittling European allies was part of virtually everything the U.S. delegation said in the Swiss ski resort. Bessent couldn’t even restrain himself from insulting Swiss-German fare. And U.S. Commerce Secretary Howard Lutnik appeared almost gleeful in infuriating Europe’s leaders with his combative remarks at a VIP dinner which, according to the Financial Times, not only sparked uproar but prompted European Central Bank President Christine Lagarde to leave the event early. “Only one person booed, and it was Al Gore,” said the U.S. Commerce Department in a statement to media. But others at the event — around 200 people — said there was, indeed, some heckling, though not so much because of the content of Lutnik’s criticism, some of which Europeans have also made about net zero, energy policy, globalization and regulation. According to two attendees, who asked to be granted anonymity to speak freely, it was in reaction to the contemptuous tone instead. Likewise, Trump’s delegation — the largest ever brought from Washington to Davos — didn’t miss a beat in pressing America First themes, making it clear the U.S. would prioritize its own economic interests regardless of how it affects allies. “When America shines, the world shines,” Lutnik said. China, too, has been noticeably more menacing in its diplomatic speech in recent years — though it tends to eschew personal invective. | Pool photo by Vincent Thian/EPA As the forum unfolded, however, U.S. Vice President JD Vance insisted that what was fueling such criticism wasn’t hatred for the old continent, but that it was more a matter of tough love. “They think that we hate Europe. We don’t. We love Europe,” he said. “We love European civilization. We want it to preserve itself.” That in itself seems pretty condescending. Tough love or not, Europe-bashing plays well with the MAGA crowd back home who feel Europeans are the haughty ones, lacking gratitude, freeloading and in dire need of subordination — and squeals of complaint merely incite more of the same. To that end, Zelenskyy made a telling a point: European leaders shouldn’t waste their time trying to change Trump but rather focus on themselves. Time to stop complaining about America First and get on with putting Europe First.
Commentary
Populism
Society and culture
EU-Russia relations
Diplomacy
Rubio walks NATO tightrope after Trump’s Greenland gambit
Secretary of State Marco Rubio tried to do two things at once in testimony to senators Wednesday: take the temperature down after President Donald Trump rattled NATO by seeking to acquire Greenland, while delivering Trump’s message that the alliance must change. Rubio’s tightrope walk was on display at a sometimes-testy Senate Foreign Relations Committee hearing, where senators pressed him to repair frayed ties with Denmark and other allies. The moment underscored how Rubio’s — sometimes seen as the most pro-European of Trump’s top team — balances the administration’s America First views. Tensions between Europe and the U.S. spiked this month after Trump threatened tariffs and refused for weeks to rule out using force to take over the self-governing Danish territory. He has since backed down, describing a “framework” for talks following a meeting with NATO Secretary-General Mark Rutte in Switzerland. European leaders have warned that the damage could linger. Rubio, however, offered an upbeat spin. “I thought it was noteworthy and important that the president, at a speech in Davos, made very clear that the United States was not going to use force or military force,” Rubio said in an exchange with Sen. Chris Coons (D-Del.). “So I think we’re going to wind up in a good place.” Friction between the U.S. and Europe had intensified earlier this month after Stephen Miller, a top Trump aide, argued on CNN that Greenland rightfully belonged to the United States and that the administration could seize it if it wanted. Trump’s refusal to rule that out for weeks fueled the tensions. Rubio stressed Wednesday that the issue would now shift to a “very professional, straightforward” diplomatic process. “We’re going to try to do it in a way that isn’t like a media circus every time these conversations happen, because we think that creates more flexibility on both sides to arrive at a positive outcome,” he said. Coons pushed back on Trump’s claim that the U.S. gets little in return from NATO, rebuking remarks questioning the role of allied troops in Afghanistan. Coons cited a recent visit to Denmark, where he laid a wreath honoring Danish troops who “served, fought and died alongside Americans.” Rubio did not dispute Denmark’s sacrifices but pivoted to Trump’s core argument that NATO allies must shoulder a greater share of the security burden. “NATO needs to be reimagined,” Rubio said. “One of the things we’ve explained to our allies in NATO is the United States is not simply focused on Europe,” he added. “We also have defense needs in the Western Hemisphere. We have defense needs in the Indo-Pacific. We may be the richest country in the world, but we don’t have unlimited resources.”
Defense
Media
Politics
Military
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European leader spoke of shock at Trump’s state of mind after Mar-a-Lago meeting
BRUSSELS ― Slovakia’s prime minister told EU leaders at a summit last week that a meeting with Donald Trump left him shocked by the U.S. president’s state of mind, five European diplomats briefed on the conversation said. Robert Fico, one of the few EU leaders to frequently support Trump’s stance on Europe’s weaknesses, was concerned about the U.S. president’s “psychological state,” two of the diplomats said. Fico used the word “dangerous” to describe how the U.S. president came across during their face-to-face meeting at Trump’s Mar-a-Lago estate in Florida on Jan. 17, according to two of the diplomats. The conversation between Fico and his European counterparts took place in Brussels on Jan. 22 on the sidelines of an emergency EU summit arranged to discuss transatlantic relations in the wake of Trump’s threats to seize Greenland. Leaders used that gathering to try to calm tensions after the U.S. president walked back his threat to slap tariffs on some European countries over the issue a day earlier. The Slovak prime minister made his remarks in a separate informal huddle between some leaders and chief EU officials rather than during the formal roundtable talks, the diplomats said. While none of the diplomats who spoke to POLITICO were present, individual leaders briefed them separately on the content of the conversation shortly after it. All the diplomats were granted anonymity by POLITICO to allow them to discuss the confidential exchanges between leaders. They come from four different EU governments. The fifth is a senior EU official. All of them said they didn’t know the details of what Trump had said to Fico that had triggered his reaction. Fico’s comments are especially pertinent because he’s among Europe’s most pro-Trump politicians, touting his access to the U.S. president in a Facebook video after the Mar-a-Lago meeting and voicing support for Washington’s approach to the Russia-Ukraine war. A year ago, Fico spoke at the Conservative Political Action Conference and told Americans “your president is doing Europe a great service.” Spokespeople for Fico did not respond to multiple requests for comment. Anna Kelly, a White House spokesperson, said: “This is absolutely total fake news from anonymous European diplomats who are trying to be relevant. The meeting at Mar-a-Lago was positive and productive.” A senior administration official who was in the meeting with Trump and Fico, granted anonymity to describe the conversation, said they couldn’t recall any awkward moments or off-key exchanges. They said the meeting, which Fico had requested, was pleasant, normal and included some lighthearted exchanges that were captured by a White House photographer. Fico seemed to be “traumatized” by his encounter with Trump, one of the European diplomats said. Fico characterized Trump as being “out of his mind,” a diplomat said, using the words briefed to them by their leader, who was directly involved in the conversation. DEEP CRISIS Fico’s private concerns contrast with the public account of his Mar-a-Lago visit that he gave via his official Facebook post. In that video, Fico said his invitation to Trump’s Florida residence was a sign of “high respect and trust” from the U.S. president. The two leaders discussed Ukraine as well as their shared view that the EU was in “deep crisis” during what Fico called “informal and open talks.” Fico, who signed a civil nuclear cooperation deal with Washington while on his trip to the U.S., did not mention Trump’s claims on Greenland or his operation to seize Venezuelan leader Nicolas Maduro earlier in January in the video. He said discussions had focused on issues including Ukraine, asserting that Washington sought his view because Slovakia is “not a Brussels parrot” — meaning that it does not echo the positions of EU institutions. Robert Fico characterized Donald Trump as being “out of his mind,” a diplomat said, using the words briefed to them by their leader, who was directly involved in the conversation. | Shawn Thew/EPA Even without Fico’s remarks, Europe’s leaders and senior officials are increasingly concerned about the U.S. president’s “unpredictability,” according to a sixth EU diplomat, who was not briefed directly by a leader on last week’s conversation. Fears about the U.S. president’s health are “rapidly becoming a more conversed topic at all levels,” said an EU official who is involved in political discussions in Brussels and between capitals. Trump, 79, has repeatedly and forcefully denied that he suffers from any condition affecting his cognition, telling New York Magazine this week that he doesn’t suffer from Alzheimer’s disease. ‘I WON’T DO THAT, OK?’ Ever since Trump returned to office a year ago, European governments have been grappling with how to deal with his positions on issues such as Russia’s invasion of Ukraine, his administration’s apparent backing for far-right politicians, barriers to free trade, and the U.S. role in the continent’s defense. Earlier this month, Trump threatened new tariffs on eight European countries, including France, Germany and the U.K., which he said were blocking his efforts to take over Greenland, a semi-autonomous territory belonging to Denmark, an EU and NATO member. He also didn’t rule out taking the island by force. In a speech in Davos, Switzerland last Wednesday, the U.S. president demanded “immediate negotiations” to obtain Greenland, but ruled out the use of military action. “We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But I won’t do that, OK?” Trump said in the speech. After the speech, he said he’d agreed on a framework of a deal on Greenland with NATO Secretary-General Mark Rutte and withdrew his threat, although the details of the apparent agreement have still not been made public. At last week’s summit, French President Emmanuel Macron and German Chancellor Friedrich Merz, the EU’s two most powerful leaders, warned their counterparts that despite that apparent deal, the bloc needed to become less dependent on the U.S. for its security. Speaking after the gathering, European Commission President Ursula von der Leyen suggested the leaders had learned the lesson that standing up to Trump in a “firm” but “non-escalatory” way was an effective strategy that they should continue.  Jacopo Barigazzi, Camille Gijs and Tom Nicholson contributed reporting.
Defense
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Cooperation
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Security
Carney pushes back on Trump team over Davos speech
OTTAWA — Prime Minister Mark Carney is standing by his Davos speech, which has irked President Donald Trump and rattled Canada–U.S. trade talks. Carney rejected the Trump administration’s claim that he “aggressively” walked back his remarks on Monday during a private conversation with the president. “To be absolutely clear — and I said this to the president — I meant what I said in Davos. It was clear,” Carney told reporters Tuesday on Parliament Hill ahead of a Cabinet meeting. “Canada was the first country to understand the change in U.S. trade policy that he had initiated, and we’re responding to that.” Carney said Canada is strengthening ties overseas and investing domestically, while remaining open to reshaping its relationship with the U.S. under the U.S.-Mexico-Canada Agreement. “He understood that, and it was a good conversation,” Carney said. The Prime Minister’s Office declined to issue a readout of their conversation, as is typically done with calls between Carney and political leaders. Carney delivered a speech at the World Economic Forum in Davos, Switzerland, last week that encouraged middle powers to stand up to American “hegemony.” The speech went viral and prompted a rebuke from the Trump administration. The president has since criticized Carney on his deal with China, threatened Canada with 100 percent tariffs and disinvited Carney from his “Board of Peace.” Trump also called Carney “governor,” a term he previously used to mock former Prime Minister Justin Trudeau when talking about making Canada a “51st state.” Treasury Secretary Scott Bessent said Canada’s prime minister should do what’s best for Canadians “rather than push his own globalist agenda.” “I was in the Oval [Office] with the president today,” Bessent said Monday on Fox News’ “Hannity.” “He spoke to Prime Minister Carney, who was very aggressively walking back some of the unfortunate remarks he made at Davos.” He added: “I’m not sure what the prime minister was thinking. Of course Canada depends on the U.S. There’s much more north-south trade than there could ever be east-west trade.”
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Trade
Davos
UK’s Starmer mocks Macron’s sunglasses
LONDON — Keir Starmer has been throwing a little shade at fellow world leaders. The British prime minister ditched his buttoned-up public persona on Monday evening to poke fun at France’s Emmanuel Macron during a live recording of comedian Matt Forde’s podcast. Handed a pair of aviator sunglasses, similar to those worn by the French president during the World Economic Forum in Davos last week due to an eye health issue, Starmer put them on and jibed to audience laughter: “Bonjour.” The clip was posted on the PM’s TikTok feed with a message to Macron saying: “Talk to me, Goose” — a reference to the 1986 Tom Cruise film “Top Gun.” > @keirstarmer @Emmanuel Macron ♬ original sound – Keir Starmer Starmer told Forde that while he will consider wearing the specs to international summits, he will need his normal glasses back to be able to see in parliament. It’s not the first time Macron’s shades have raised eyebrows. “I watched him yesterday with those beautiful sunglasses. What the hell happened?” Donald Trump remarked during a speech at Davos. Starmer also disclosed that Trump regularly rings him on his mobile phone, rather than using official government communications. “Once I was in the flat with the kids cleaning pasta off the table after their dinner, and the phone goes and it’s Donald on the phone,” Starmer said. “Another time, I’d say most inconvenient, we’re halfway through the Arsenal-PSG game,” he added, referencing his love of the top-flight soccer team. In a more serious moment, Starmer defended his decision to travel to China this week, in the first trip to the country by a British prime minister since 2018. “If you’re a leader on the international stage, you are dealing with whoever is the leader in another country. I mean, it’s that simple,” he said.  
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British politics
Parliament
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Communications
Starmer finally goes to China — and tries not to trigger Trump
LONDON — Canadian Prime Minister Mark Carney left Beijing and promptly declared the U.S.-led “world order” broken. Don’t expect his British counterpart to do the same. Keir Starmer will land in the Chinese capital Wednesday for the first visit by a U.K. prime minister since 2018. By meeting President Xi Jinping, he will end what he has called an “ice age” under the previous Conservative administration, and try to win deals that he can sell to voters as a boost to Britain’s sputtering economy. Starmer is one of a queue of leaders flocking to the world’s second-largest economy, including France’s Emmanuel Macron in December and Germany’s Friedrich Merz next month. Like Carney did in Davos last week, the British PM has warned the world is the most unstable it has been for a generation. Yet unlike Carney, Starmer is desperate not to paint this as a rupture from the U.S. — and to avoid the criticism Trump unleashed on Carney in recent days over his dealings with China. The U.K. PM is trying to ride three horses at once, staying friendly — or at least engaging — with Washington D.C., Brussels and Beijing.  It is his “three-body problem,” joked a senior Westminster figure who has long worked on British-China relations. POLITICO spoke to 22 current and former officials, MPs, diplomats, industry figures and China experts, most of whom were granted anonymity to speak frankly. They painted a picture of a leader walking the same tightrope he always has surrounded by grim choices — from tricky post-Brexit negotiations with the EU, to Donald Trump taking potshots at British policies and freezing talks on a U.K.-U.S. tech deal. Starmer wants his (long-planned) visit to China to secure growth, but be cautious enough not to compromise national security or enrage Trump. He appears neither to have ramped up engagement with Beijing in response to Trump, nor reduced it amid criticism of China’s espionage and human rights record. In short, he doesn’t want any drama. “Starmer is more managerial. He wants to keep the U.K.’s relationships with big powers steady,” said one person familiar with planning for the trip. “You can’t really imagine him doing a Carney or a Macron and using the trip to set out a big geopolitical vision.” An official in 10 Downing Street added: “He’s clear that it is in the U.K.’s interests to have a relationship with the world’s second biggest economy. While the U.S. is our closest ally, he rejects the suggestion that means you can’t have pragmatic dealings with China.” He will be hoping Trump — whose own China visit is planned for April — sees it that way too. BRING OUT THE CAVALRY Starmer has one word in his mind for this trip — growth, which was just 0.1 percent in the three months to September. The prime minister will be flanked by executives from City giants HSBC, Standard Chartered, Schroders and the London Stock Exchange Group; pharmaceutical company AstraZeneca; car manufacturer Jaguar Land Rover; energy provider Octopus; and Brompton, the folding bicycle manufacturer. The priority in Downing Street will be bringing back “a sellable headline,” said the person familiar with trip planning quoted above. The economy is the overwhelming focus. While officials discussed trying to secure a political win, such as China lifting sanctions it imposed on British parliamentarians in 2021, one U.K. official said they now believe this to be unlikely. Between them, five people familiar with the trip’s planning predicted a large number of deals, dialogues and memorandums of understanding — but largely in areas with the fewest national security concerns. These are likely to include joint work on medical, health and life sciences, cooperation on climate science, and work to highlight Mandarin language schemes, the people said.  Officials are also working on the mutual recognition of professional qualifications and visa-free travel for short stays, while firms have been pushing for more expansive banking and insurance licences for British companies operating in China. The U.K. is meanwhile likely to try to persuade Beijing to lower import tariffs on Scotch whisky, which doubled in February 2025. A former U.K. official who was involved in Britain’s last prime ministerial visit to China, by Theresa May in 2018, predicted all deals will already be “either 100 or 99 percent agreed, in the system, and No. 10 will already have a firm number in its head that it can announce.” THREADING THE NEEDLE Yet all five people agreed there is unlikely to be a deal on heavy energy infrastructure, including wind turbine technology, that could leave Britain vulnerable to China. The U.K. has still not decided whether to let Ming Yang, a Chinese firm, invest £1.5 billion in a wind farm off the coast of Scotland. And while Carney agreed to ease tariffs on Chinese electric vehicles (EVs), three of the five people familiar with the trip’s planning said that any deep co-operation on EV technology is likely to be off the table. One of them predicted: “This won’t be another Canada moment. I don’t see us opening the floodgates on EVs.” Britain is trying to stick to “amber and green areas” for any deals, said the first person familiar with the planning. The second of the five people said: “I think they‘re going for the soft, slightly lovey stuff.” Britain has good reason to be reluctant, as Chinese-affiliated groups have long been accused of hacking and espionage, including against MPs and Britain’s Electoral Commission. Westminster was gripped by headlines in December about a collapsed case against two men who had been accused of spying for China. Chinese firm Huawei was banned from helping build the U.K.’s 5G phone network in 2020 after pressure from Trump. Even now, Britain’s security agencies are working on mitigations to telecommunications cables near the Tower of London. They pass close to the boundary of China’s proposed embassy, which won planning approval last week. Andrew Small, director of the Asia Programme at the European Council on Foreign Relations, a think tank working on foreign and security policy, said: “The current debate about how to ‘safely’ increase China’s role in U.K. green energy supplies — especially through wind power — has serious echoes of 5G all over again, and is a bigger concern on the U.S. side than the embassy decision.”  Starmer and his team also “don’t want to antagonize the Americans” ahead of Trump’s own visit in April, said the third of the five people familiar with trip planning. “They’re on eggshells … if they announce a new dialogue on United Nations policy or whatever bullshit they can come up with, any of those could be interpreted as a broadside to the Trump administration.” All these factors mean Starmer’s path to a “win” is narrow. Tahlia Peterson, a fellow working on China at Chatham House, the international affairs think tank, said: “Starmer isn’t going to ‘reset’ the relationship in one visit or unlock large-scale Chinese investment into Britain’s core infrastructure.” Small said foreign firms are being squeezed out of the Chinese market and Xi is “weaponizing” the dependency on Chinese supply chains. He added: “Beijing will likely offer extremely minor concessions in areas such as financial services, [amounting to] no more than a rounding error in economic scale.” Chancellor Rachel Reeves knows the pain of this. Britain’s top finance minister was mocked when she returned with just £600 million of agreements from her visit to China a year ago. One former Tory minister said the figure was a “deliberate insult” by China. Even once the big win is in the bag, there is the danger of it falling apart on arrival. Carney announced Canada and China would expand visa-free travel, only for Beijing’s ambassador to Ottawa to say that the move was not yet official. Despite this, businesses have been keen on Starmer’s re-engagement.  Rain Newton-Smith, director-general of the Confederation of British Industry, said firms are concerned about the dependence on Chinese rare earths but added: “If you map supply chains from anywhere, the idea that you can decouple from China is impossible. It’s about how that trade can be facilitated in the best way.” EMBASSY ROW Even if Starmer gets his wins, this visit will bring controversies that (critics say) show the asymmetry in Britain’s relationship with China. A tale of two embassies serves as a good metaphor.  Britain finally approved plans last week for China’s new outpost in London, despite a long row over national security. China held off formally confirming Starmer’s visit until the London embassy decision was finalized, the first person familiar with planning for the trip said. (Others point out Starmer would not want to go until the issue was resolved.) The result was a scramble in which executives were only formally invited a week before take-off. And Britain has not yet received approval to renovate its own embassy in Beijing. Officials privately refer to the building as “falling down,” while one person who has visited said construction materials were piled up against walls. It is “crumbling,” added another U.K. official: “The walls have got cracks on them, the wallpaper’s peeling off, it’s got damp patches.” British officials refused to give any impression of a “quid pro quo” for the two projects under the U.K.’s semi-judicial planning system. But that means much of Whitehall still does not know if Britain’s embassy revamp in Beijing will be approved, or held back until China’s project in London undergoes a further review in the courts. U.K. officials are privately pressing their Chinese counterparts to give the green light. One of the people keenest on a breakthrough will be Britain’s new ambassador to Beijing Peter Wilson, a career diplomat described by people who have met him as “outstanding,” “super smart” and “very friendly.”  For Wilson, hosting Starmer will be one of his trickiest jobs yet. The everyday precautions when doing business in China have made preparations for this trip more intense. Government officials and corporate executives are bringing secure devices and will have been briefed on the risk of eavesdropping and honeytraps. One member of Theresa May’s 2018 delegation to China recalled opening the door of what they thought was their vehicle, only to see several people with headsets on, listening carefully and typing. They compared it to a scene in a spy film. Activists and MPs will put Starmer under pressure to raise human rights issues — including what campaigners say is a genocide against the Uyghur people in Xinjiang province — on a trip governed by strict protocol where one stray word can derail a deal.  Pro-democracy publisher Jimmy Lai, who has British nationality, is facing sentencing in Hong Kong imminently for national security offenses. During the PM’s last meeting with Xi in 2024, Chinese officials bundled British journalists out of the room when he raised the case. Campaigners had thought Lai’s sentencing could take place this week. All these factors mean tension in the British state — which has faced a tussle between “securocrats” and departments pushing for growth — has been high ahead of the trip. Government comments on China are workshopped carefully before publication. Earlier this month, Foreign Secretary Yvette Cooper told POLITICO her work on Beijing involves looking at “transnational repression” and “espionage threats.” But when Chancellor Rachel Reeves met China’s Finance Minister He Lifeng in Davos last week to tee up Starmer’s visit, the U.K. Treasury did not publicize the meeting — beyond a little-noticed photo on its Flickr account. SLOW BOAT TO CHINA Whatever the controversies, Labour’s China stance has been steadily taking shape since before Starmer took office in 2024. Labour drew inspiration from its sister party in Australia and the U.S. Democrats, both of which had regular meetings with Beijing. Party aides argued that after a brief “golden era” under Conservative PM David Cameron, Britain engaged less with China than with the Soviet Union during the Cold War. The result of Labour’s thinking was the policy of “three Cs” — “challenge, compete, and cooperate.” A procession of visits to Beijing followed, most notably Reeves last year, culminating in Starmer’s trip. His National Security Adviser Jonathan Powell was involved in planning across much of 2025, even travelling to meet China’s top diplomat, Wang Yi, in November. Starmer teed up this week’s visit with a December speech arguing the “binary” view of China had persisted for too long. He promised to engage with Beijing carefully while taking a “more transactional approach to pretty well everything.”  The result was that this visit has long been locked in; just as Labour aides argue the London embassy decision was set in train in 2018, when the Tory government gave diplomatic consent for the site. Labour ministers “just want to normalize” the fact of dealing with China, said the senior Westminster figure quoted above. Newton-Smith added: “I think the view is that the government’s engagement with eyes wide open is the right strategy. And under the previous government, we did lose out.” But for each person who praises the re-engagement, there are others who say it has left Britain vulnerable while begging for scraps at China’s table. Hawks argue the hard details behind the “three Cs” were long nebulous, while Labour’s long-awaited “audit” of U.K.-China relations was delayed before being folded briefly into a wider security document. “Every single bad decision now can be traced back to the first six months,” argued the third person familiar with planning quoted above. “They were absolutely ill-prepared and made a series of decisions that have boxed them into a corner.” They added: “The government lacks the killer instinct to deal with China. It’s not in their DNA.” Luke de Pulford, a human rights campaigner and director of the Inter-Parliamentary Alliance on China, argued the Tories had engaged with China — Foreign Secretary James Cleverly visited in 2023 — and Labour was simply going much further. “China is pursuing an enterprise to reshape the global order in its own image, and to that end, to change our institutions and way of life to the extent that they’re an obstacle to it,” he said. “That’s what they’re up to — and we keep falling for it.” END OF THE OLD ORDER? His language may be less dramatic, but Starmer’s visit to China does have some parallels with Canada. Carney’s trip was the first by a Canadian PM since 2017, and he and Xi agreed a “new strategic partnership.” Later at Davos, the Canadian PM talked of “the end of a pleasant fiction” and warned multilateral institutions such as the United Nations are under threat. One British industry figure who attended Davos said of Carney’s speech: “It was great. Everyone was talking about it. Someone said to me that was the best and most poignant speech they’d ever seen at the World Economic Forum. That may be a little overblown, but I guess most of the speeches at the WEF are quite dull.” The language used by Starmer, a former human rights lawyer devoted to multilateralism, has not been totally dissimilar. Britain could no longer “look only to international institutions to uphold our values and interests,” he said in December. “We must do it ourselves through deals and alliances.” But while some in the U.K. government privately agree with Carney’s point, the real difference is the two men’s approach to Trump. Starmer will temper his messaging carefully to avoid upsetting either his Chinese hosts or the U.S., even as Trump throws semi-regular rocks at Britain. To Peterson, this is unavoidable. “China, the U.S. and the EU are likely to continue to dominate global economic growth for the foreseeable future,” she said. “Starmer’s choice is not whether to engage, but how.” Esther Webber contributed reporting.
Energy
Farms
Cooperation
Security
Negotiations
EU, India reach agreement on trade deal
NEW DELHI — The EU and India have concluded trade talks on a free trade agreement, a senior Indian official told POLITICO.  “Official-level negotiations are being concluded and both sides are all set to announce the successful conclusion of FTA talks on 27th January,” Commerce Secretary Rajesh Agrawal told POLITICO.  Under the deal, India is expected to significantly reduce tariffs on cars and machinery as well agricultural goods such as wine and hard alcohol. “This would be a very good story for our agriculture sector. I believe we are aiming to start a completely new chapter in the field of cooperation in the automotive sector, in machinery,” EU trade chief Maroš Šefčovič told POLITICO. On trade in services, the trade chief said that sectors like telecoms, maritime and financial services were expected to benefit. “This is again something where also India is making groundbreaking steps to new levels of cooperation, because we are the first one with whom they’re ready to consider this cooperation,” he said.  The conclusion to the talks arrived as the EU leadership was on a three-day visit to India for a summit to boost trade and defense ties between New Delhi and Brussels.  With the talks between the two sides having been on and off since 2007, the pact comes at an ideal moment as New Delhi and Brussels battle steep tariffs from the U.S. and cheap goods from China. 
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Agriculture
Agriculture and Food
Cooperation
Negotiations