Trump arrives in Switzerland, where his quest to own Greenland could overshadow his other goals

President Donald Trump arrived in Switzerland after facing delays due to a minor electrical issue aboard Air Force One that forced a return to Washington to switch aircraft. The incident pushed back his arrival by several hours as he prepares to address the World Economic Forum in the Swiss Alps on Wednesday.

Trump’s appearance at Davos comes amid escalating tensions with European allies over his controversial ambitions to acquire Greenland from Denmark. This unexpected diplomatic rift threatens to overshadow his original plan to discuss domestic affordability issues during his address to the gathering of global business and political leaders.

In recent days, Trump has threatened to impose tariffs on Denmark and seven other allies unless they negotiate a transfer of the semi-autonomous territory. The proposed tariffs would begin at 10% next month and increase to 25% by June—rates economists warn could increase costs and slow economic growth, potentially undermining Trump’s stated goal of reducing the high cost of living for Americans.

Adding to the diplomatic tension, European officials revealed that Trump sent a text message to Norway’s Prime Minister Jonas Gahr Støre linking his aggressive stance on Greenland to last year’s decision not to award him the Nobel Peace Prize. In the message, Trump reportedly stated he no longer felt “an obligation to think purely of Peace.”

U.S. Commerce Secretary Howard Lutnick previewed the administration’s message at a Davos panel on Tuesday, declaring that “Globalization has failed the West and the United States of America. It’s a failed policy.”

Financial markets reacted negatively to the escalating trade tensions. On Tuesday, the S&P 500 fell 2.1%, its largest single-day drop since October, while the Dow Jones Industrial Average dropped 1.8% and the Nasdaq composite slumped 2.4%.

European leaders have responded firmly to Trump’s tariff threats. French President Emmanuel Macron, without directly mentioning Trump, urged fellow leaders to reject “the law of the strongest” in his forum address. European Commission President Ursula von der Leyen warned that the bloc’s response to any tariffs would be “unflinching, united and proportional.”

Von der Leyen also pointedly referenced the U.S.-EU trade framework reached last summer: “The European Union and the United States have agreed to a trade deal last July. And in politics as in business — a deal is a deal. And when friends shake hands, it must mean something.”

Before his departure, Trump told reporters he planned to use his Davos appearance to address housing affordability and other cost-of-living issues that remain top priorities for many Americans. However, economic experts like Scott Lincicome from the Cato Institute warn that Trump’s Greenland tariff threat could disrupt the U.S. economy if it undermines the trade truce with the EU, potentially raising interest rates and making homes less affordable.

The White House sees Trump’s Davos speech as an opportunity to reconnect with his populist base in the United States, where affordability concerns remain widespread. According to recent polling by The Associated Press-NORC Center for Public Affairs Research, about six in ten U.S. adults believe Trump has hurt the cost of living.

The housing market presents particular challenges, with U.S. home sales at a 30-year low as rising prices and elevated mortgage rates keep many potential buyers sidelined. Trump has announced plans to purchase $200 billion in mortgage securities to help lower interest rates on home loans and has called for restrictions on large financial companies buying residential properties.

Following his keynote address, Trump plans to meet with various leaders on the forum’s sidelines. On Thursday, he will host an event to discuss his “Board of Peace,” a proposed new body intended to oversee the end of the Israel-Hamas war in Gaza. The initiative has received limited support, with fewer than ten leaders accepting invitations to join, while several key European partners have declined or remained noncommittal.

When questioned about the new body potentially competing with the United Nations, Trump suggested his peace board “might” eventually make the UN obsolete, though he added, “I believe you got to let the U.N. continue, because the potential is so great.”