By Damian Paletta

Good morning. The atmosphere is different.

World leaders are no longer just on edge from President Trump's "keep 'em guessing" foreign policy. Now, they are publicly starting to bristle and forge new alliances. Trump's threats to allies are stirring worries that the U.S. has lost its way, and European and Canadian leaders are openly discussing what was once unthinkable -- a "decoupling" of Europe and Canada from the U.S.

The latest showdown is over Trump's intensifying pursuit of Greenland, which has prompted Europeans to draw a line in the snow.

He isn't ruling out aggressive steps to take control of Greenland, and asked during his two-hour press conference Tuesday how far he would go to seize control of it, he told a reporter " You'll find out." The clash risks undermining America's place in the world order.

European leaders are being urged to dig in, to fight back. It's unclear how they might do this. They have spent much of the past year trying to find ways to cajole the president and guide him toward offramps (like trade deals) that he can still market as "wins" for the U.S. What does "fight back" look like? Here are $100 billion of American goods at risk of tariffs in Trump's push for Greenland.

So it's against this backdrop that Trump will arrive at the World Economic Forum in Davos, Switzerland, on Wednesday. He was set to deliver a speech to outline his housing-policy agenda, but the Greenland showdown has overshadowed everything else. Trump's relations with European leaders have broken down so much in recent days that he's taken to publishing their text-message exchanges on social media. Can this frosty dynamic be reversed in the Alpine air on Wednesday, or will the historic breakup only snowball from here?

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People and Policies I'm Watching

Lisa Cook: The Supreme Court is to hears arguments Wednesday over whether Trump can fire the Fed governor.

Iran options: Trump seeks "decisive" options for Iran as the U.S. moves assets to the Middle East

Trump's Wednesday: With Trump arriving in Davos, he is to participate in a greeting with the World Economic Forum leadership at 2:10 p.m. Central Eastern Time, deliver an address at 2:30 p.m. and participate in meetings with world leaders at 3:45 p.m. and in a reception with business leaders at 5:25 p.m.

What I'm Following

Davos is gearing up for Trump's arrival. Tensions are simmering over his designs on Greenland. His trip was briefly delayed by a "minor electrical issue" on Air Force One, which returned to Joint Base Andrews less than an hour after departing. Ahead of his arrival, Treasury Secretary Scott Bessent told European allies not to stand in the way of the U.S.'s national-security goals and said Denmark is irrelevant. Follow live updates.

Democratic senators demanded Pam Bondi and Bill Pulte preserve Powell probe records. Elizabeth Warren and Dick Durbin are demanding that the Trump administration officials turn over records related to the Justice Department's criminal probe of Federal Reserve Chair Jerome Powell, the first official congressional response to subpoenas the Fed received earlier this month.

Denmark is grappling with unwanted attention from Trump. Since 9/11, the nation has adhered to what it calls Super-Atlanticism, which makes alignment with the U.S. -- beyond standard NATO commitments -- a foreign-policy priority. Danes have largely supported this U.S.-centered approach, based on a belief in shared values. Today, the overwhelming feeling is betrayal.

What Else Is Happening

   -- A John Thune-aligned super PAC is spending big on Susan Collins in Maine, 
      despite Trump criticism. 
 
   -- The Supreme Court signaled it would strike down a Hawaii law banning guns 
      from being carried in privately owned public places without the property 
      owner's permission. 
 
   -- The Justice Department subpoenaed top Minnesota Democrats. 
 
   -- 6,000 Truth Social posts later, here are the promises Trump kept -- and 
      broke. 

What I'm Reading

   -- California Republican Party Asks Supreme Court to Halt New Congressional 
      Map (Sacramento Bee) 
 
   -- DOJ Subpoenas Minnesota Democrats Over Alleged ICE Obstruction 
      (Washington Examiner) 
 
   -- Military Models Canadian Response to Hypothetical American Invasion 
      (Globe and Mail -- Toronto) 

About Me

I'm Damian Paletta, The Wall Street Journal's Washington coverage chief. I've covered Washington for 22 years as a reporter and editor. I've covered the White House, Congress, national security, the federal budget, economics and multiple market meltdowns.

WSJ Politics brings you an expert guide to what's driving D.C., every weekday morning. Send your feedback to politics@wsj.com (if you're reading this in your inbox, you can just hit reply). This edition was curated and edited in collaboration with Alistair Dawber and Michael Connolly. Got a tip for us? Here's how to submit.

(END) Dow Jones Newswires

January 21, 2026 07:05 ET (12:05 GMT)

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