President Trump’s Sudden U-Turn on Greenland

Summary

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WSJ What’s News – “President Trump’s Sudden U-Turn on Greenland”

Date: January 21, 2026
Host: Alex Osil
Guests: Robbie Grammer (WSJ National Security Reporter), Nick Timoros (WSJ Chief Economics Correspondent), Callum Borchers (WSJ “On the Clock” Columnist)

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Overview

This episode dives into President Trump’s dramatic reversal on Greenland: backing off tariffs on Europe and publicly disavowing the use of force to gain control of the Arctic island. The hosts and expert correspondents dissect the implications for U.S.-European relations, the market’s reaction, and the ongoing uncertainties about Trump’s intentions. Additional segments cover the Supreme Court hearing on Federal Reserve Governor Lisa Cook, a congressional move involving the Clintons, blue-collar job prospects for white-collar workers, and Amazon’s expansion into big box retail.

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Key Topics & Segments

1. Trump’s Greenland Reversal and U.S.–Europe Tensions

[00:23 – 04:46]

• Backdrop: The day began with heightened U.S.-Europe tensions over potential tariffs and Trump’s push regarding Greenland. By the afternoon, Trump made a “U-turn,” announcing he would not impose tariffs and would not use force to secure the island.

• European Response:

  • Robbie Grammer reports European officials are “somewhere between dazed, shocked and confused” by Trump’s abrupt shift.
  • Despite de-escalation, anxiety remains high as European leaders fear Trump could reverse course at any moment.
  • Quote:

    “Even though this is now a new de-escalation, they’re still just as shocked, just as confused, and just about as anxious as they were before.”
    — Robbie Grammer [02:19]

• Trump’s Statement in Davos:

  • Trump makes a point to clarify he won’t use force:

    “I don’t have to use force. I don’t want to use force. I won’t use force.”
    — President Donald Trump [01:40]

• Proposed Framework for Greenland:

  • The U.S. floated a “framework for a future deal” after talks with NATO Secretary General Mark Rutte, seen as a “Trump whisperer.”
  • The model cited is the Compact of Free Association (COFA), typically used for Pacific islands, offering U.S. funding and security in exchange for strategic presence – but Greenland and Denmark reject any compromise on sovereignty.
  • Quote:

    “These Danish and Greenlandic leaders say is an absolute red line. They’re not willing to cede Greenland’s territory or sovereignty. They’re saying this island, our people, are not for sale. And these are just two irreconcilable differences between the American side and the European side here.”
    — Robbie Grammer [03:50]

• Market Reaction:

  • Trump’s de-escalation triggered an immediate surge in the stock market, with the Dow, S&P, and Nasdaq all up 1.2%.
  • Coverage resumes with business highlights and context in later segments. [08:54]

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2. Supreme Court Hearing: Federal Reserve Governor Lisa Cook’s Dismissal

[04:53 – 07:22]

• Case Summary: Trump tried to fire Lisa Cook, Fed governor, last year. The Supreme Court’s decision could define how insulated the Fed is from presidential interference—a major concern for markets.
• Hearing Details:

  • The President fired Cook via a Truth Social post; the Court questioned whether due process was followed.

  • Justices seemed likely to let Cook stay for now, pending a full legal challenge.

    • Quote:

      “The legal analysts that I spoke with after the hearing thought the justices sounded inclined to let Lisa Cook stay in her job, at least while her broader legal challenge plays out.”
      — Nick Timoros [06:15]

  • Skepticism toward the administration’s arguments comes from both analysts and Justices, who worry about threats to Federal Reserve independence.

  • Justice Kavanaugh questions the precedent this might set for future Presidents tampering with Fed policy.

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3. Congressional Action: Clintons Found in Contempt Over Epstein Deposition

[07:27 – 08:10]

• Development: A bipartisan House committee voted to find Bill and Hillary Clinton in contempt for declining to appear regarding Jeffrey Epstein; it now advances to the full House.
• Clintons’ Stance: They argue subpoenas are invalid and deny any knowledge of Epstein’s crimes.
• Note: Briefly noted, with no panel discussion.

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4. Stock & Business News: Market Rally, Amazon’s Big Box Expansion, Earnings

[08:54 – 10:45]

• Market Surge: U.S. indexes jumped on Trump’s tariff reversal.
• Earnings:
  • Charles Schwab’s Q4 profits soared 34%, driven by increased young investor activity.
  • Johnson & Johnson’s revenue beat expectations, helped by sales in cancer and autoimmune drugs.
• Amazon:
  • Launching its biggest store ever near Chicago—a 230,000 sq. ft. hybrid retail/fulfillment center, outpacing Walmart and Target footprints.
  • Expansion into bricks-and-mortar suggests a new phase for Amazon’s U.S. presence.

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5. Blue-Collar Job Opportunities for White-Collar Workers

[10:45 – 12:19]

• Labor Market Context:

  • White-collar professionals face a tough job market; blue-collar industries are desperate for workers.
  • Quote:

    "If you're a white collar worker who's feeling kind of stalled, you might say, well, geez, am I willing to take a little step back in the short run to really boost my earnings in the longer term?"
    — Callum Borchers [11:44]

• Paths to High Earnings:

  • Example: Service advisor at Crash Champions, a rapidly expanding auto repair company—$60,000 during apprenticeship, management paths to $200,000+.
  • Transition requires a temporary pay cut and a mindset shift, especially challenging for mid-career workers.

• AI Factor:

  • Blue-collar jobs may be more “AI-proof” than some entry-level office roles.
  • Younger workers increasingly weigh automation risk when making career choices.

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Notable Quotes

• “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. ... I don’t have to use force. I don’t want to use force. I won’t use force.”
  — President Donald Trump [01:40]

• “A lot of European officials ... are somewhere between dazed, shocked and confused. ... Even though this is now a new de-escalation, they’re still just as shocked, just as confused, and just about as anxious as they were before.”
  — Robbie Grammer [02:19]

• “Anything that undermines Greenland and Denmark’s sovereignty over Greenland… is an absolute red line. ... These are just two irreconcilable differences between the American side and the European side here.”
  — Robbie Grammer [03:50]

• “The legal analysts that I spoke with after the hearing thought the justices sounded inclined to let Lisa Cook stay in her job, at least while her broader legal challenge plays out.”
  — Nick Timoros [06:15]

• “If you’re a white collar worker who’s feeling kind of stalled, you might say, well, geez, am I willing to take a little step back in the short run to really boost my earnings in the longer term?”
  — Callum Borchers [11:44]

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Timestamps for Important Segments

• Trump’s Greenland U-turn and Markets: [00:23 – 04:46]
• Federal Reserve Lisa Cook Hearing: [04:53 – 07:22]
• Clintons in Contempt Over Epstein: [07:27 – 08:10]
• Market & Earnings Recap, Amazon’s Big Box Move: [08:54 – 10:45]
• White-to-Blue Collar Career Shifts: [10:45 – 12:19]

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Tone & Style

The episode maintains a brisk, fact-driven Wall Street Journal tone, with calm but urgent reporting and analysis, colored by on-the-ground European confusion and U.S. market optimism.

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Summary

This episode highlights a whiplash shift in U.S. foreign policy as President Trump unexpectedly backs off aggressive posturing over Greenland, calming (but not erasing) European anxieties and boosting U.S. markets. The Supreme Court signals support for preserving independent monetary policy in the face of unprecedented White House interference, while Congress takes an unusual bipartisan action against the Clintons over the Epstein case. In business, the markets respond strongly to the day’s news, Amazon tries a super-sized store, and listeners are offered insights into lucrative blue-collar paths amid office job uncertainty—especially relevant as AI reshapes the employment landscape.

Transcript

[Jessica Mendoza]

Hey, this is Jessica Mendoza, host of the Journal Podcast, our show about money, business and power. If you're looking for more deeply reported stories like we share every day, consider becoming a subscriber to the Wall Street Journal. Visit subscribe.WSJ.com TheJournal all lowercase to subscribe now.

[Alex Osil]

President Trump makes a head spinning u turn on Greenland, calling off tariffs on Europe and saying he won't use force to take the island. How is Europe responding?

[Robbie Grammer]

A lot of European officials that I've been speaking to in recent days are somewhere between dazed, shocked and confused. And even though this is now a new de escalation, they're still just as shocked, just as confused, and just about as anxious as they were before.

[Alex Osil]

Trump's comments about a framework for a Greenland deal in the afternoon sends stock markets surging. Plus, Federal Reserve Governor Lisa Cook seems likely to keep her job after a hearing at the supreme court. It's Wednesday, January 21st. I'm Alex Osil, left for the Wall Street Journal. This is the PM edition of what's the top headlines and business stories that move the world today? A day that started with high tensions between the US And Europe has taken on a more conciliatory tone. President Trump said this afternoon that he wouldn't impose tariffs on several European countries after he reached the, quote, framework of a future deal on Greenland and the Arctic region, which with NATO Secretary General Mark Rutte. Trump's de escalating had started earlier today in a speech at Davos when he ruled out the use of force in his pursuit of Greenland.

[President Donald Trump]

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. Okay, now everyone's saying, oh, good. That's probably the biggest statement I made because people thought I would use force. I don't have to use force. I don't want to use force. I won't use force.

[Alex Osil]

For more, I'm joined now by WSJ national security reporter Robbie Grammer. Well, Robbie, we spoke earlier this afternoon about how Europeans were reacting to Trump's speech at Davos. Now we're talking again because he's canceled the tariff threat. How is this going over in Europe?

[Robbie Grammer]

In his speech at the World Economic Forum in Davos, he said, we're not going to take it by force, but we really need this Arctic island. It's vital for our security, it's vital for NATO security, and NATO should stop opposing this. And then the threat of new tariffs on European countries, which triggered a bit of a shock in the markets and a lot of backlash in Europe. He has now taken those threats back. A lot of European officials that I've been speaking to in recent days are somewhere between dazed, shocked and confused. And even though this is now a new de escalation, they're still just as shocked, just as confused and just about as anxious as they were before. One I spoke to said, you know, obviously it's a relief here. Trump said there's a framework for a deal. He's taken off the threat of tariffs, but just as easily he could put them on again tomorrow if his mood changes again.

[Alex Osil]

Do we know any details about this framework of a future deal, as he says?

[Robbie Grammer]

So the news just broke. We're still waiting for more details on what this framework looks like. This was proposed after Trump took a meeting with NATO Secretary General Mark Rutte. Many in Europe see him sort of as a Trump whisperer. There's a lot of really complicated legal questions here, and it's one that European officials, legal experts, didn't really have to think of before this because no one thought that an American leader would try to buy an island in the same way that countries did in the 17th, 18th, 19th centuries. Here there is a framework that the United States has proposed. It's called cofa, or Compact of Free Association. That's a model that the United States has used with a few small Pacific islands, including Micronesia and Marshall Islands. These islands are allowed to self govern and the US Pays them, underwrites a lot of their their governance services. And in exchange, the US Basically has free reign to be in charge of its defense and security. But again, anything that undermines Greenland and Denmark's sovereignty over Greenland, these Danish and Greenlandic leaders say is an absolute red line. They're not willing to cede Greenland's territory or sovereignty. They're saying this island, our people, are not for sale. And these are just two irreconcilable differences between the American side and the European side here. And we don't know how or if this framework that Trump proposes have really addressed that yet.

[Alex Osil]

That was WSJ national security reporter Robbie Grammer. Thanks, Robbie.

[Robbie Grammer]

Thanks for having me.

[Alex Osil]

The U.S. supreme Court today heard oral arguments in the case of Lisa Cook, the member of the Federal Reserve Board of Governors who President Trump tried to fire last year. And the sess rough going for the Trump administration. The court's decision could have consequences beyond Cook's individual case determining whether the Fed will keep setting monetary policy independent of presidential meddling. A huge matter of concern for investors and the broader economy. For more on the hearing, I'm joined now by WSJ chief economics correspondent Nick Timoros. Nick, coming into today's hearing, the Supreme Court had signaled that it wanted to protect the Fed from political interference. For example, there was a decision last May in which the court said Trump could fire federal commissioners, but made it clear that the Fed was off limits. How did this play out during today's arguments?

[Nick Timoros]

Well, the arguments today were unusual because they focused a lot on sort of technical elements of Lisa Cook's dismissal. So the president attempted to fire Cook in August. He did it in a letter that he posted on his Truth Social social media account. So that was something the president's attorney was asked about today. Was the nature with which you did this satisfying what the law says you can fire somebody for cause? Was Lisa Cook given a chance to defend herself? Was she given a hearing? Should she have been given a hearing?

[Alex Osil]

Which way does it seem like the justices are leaning right now?

[Nick Timoros]

Well, the legal analysts that I spoke with after the hearing thought the justices sounded inclined to let Lisa Cook stay in her job, at least while her broader legal challenge plays out. So this has all unfolded on what's known as the emergency docket or kind of an expedited process. And so at a minimum, even if Lisa Cook ultimately loses her case, it sounds like she has another year or two before you would get there because they just weren't inclined to rule against her. At this moment, the most skeptical questions were targeted towards the Solicitor General. The Trump administration's envoy at the Supreme Court, Brett Kavanaugh, asked him about concerns around independence and the Fed and what is to stop a Democratic president in 2029 or 33 from doing exactly what Donald Trump has done here. And so you could see concerns at kind of a policy level what this would mean for an interest rate policy in the markets.

[Alex Osil]

That was WSJ chief economics correspondent Nick Timiros. Thanks, Nick.

[Nick Timoros]

Thanks for having me.

[Alex Osil]

A House committee has voted to find former President Bill Clinton and former Secretary of State Hillary Clinton in contempt of Congress after the Clintons declined to appear for depositions regarding sex offender Jeffrey Epps Epstein. The committee is led by Republicans, but the vote drew significant Democratic support to pass. The measure now goes to the full House. The Clintons have said that the subpoenas demanding their appearance were invalid and that they had no personal knowledge of Epstein's criminal activities. Coming up, why struggling white collar workers might want to consider switching to blue collar careers. And Amazon goes big on big box stores. That's after the break. Foreign.

[Christopher Mims]

Hi, I'm Christopher Mims.

[Tim Higgins]

And I'm Tim Higgins.

[Christopher Mims]

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[Tim Higgins]

On our show, we bring the bold.

[Robbie Grammer]

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[Christopher Mims]

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[Alex Osil]

US Stocks rallied in the afternoon after Trump called off the tariffs on Europe. Major US Indexes ended the day higher, with the Dow, the S and P, and the Nasdaq all adding 1.2%. Speaking of wall street, we've got a special bonus episode that dropped earlier today. In the latest what's News and Earnings, we dive into what's behind the booming Wall street operations of the country's biggest banks and the risks bankers are looking at this year. That's in your what's News feed now. In other earnings news, Charles schwab says its fourth quarter profit rose 34% to almost $2.5 billion. A surge in activity from individual investors, particularly young ones, helped boost Schwab's trading revenue by 22% for the quarter, while Johnson and Johnson reported higher revenue and profit for the latest quarter with a boost from higher sales of drugs that treat cancer and autoimmune conditions. The company also issued a forecast for 2026 that topped Wall street expectations. And Amazon is going big on bricks and mortar, launching its largest ever store. The proposed store will be outside Chicago and at 230,000 square feet, will dwarf the average Walmart and fit almost two whole average sized Target stores. It'll sell groceries and other goods in half the store and the other half will be used for fulfilling orders, which shoppers can make online or in the store itself. The store could open as soon as next year, and people familiar with the matter say Amazon is also planning to open other big box stores in the US A tough job market has a lot of white collar workers feeling stuck. At the same time, America's traditional blue collar industries are facing a labor shortage. So is it time for some white collar workers to consider another path? Our producer Daniel Bach asked the Journal's on the Clock columnist Callum Borchers about what it would take to make the switch.

[Tim Higgins]

So I think people know that you can be a master electrician or plumber and make good money, but you're thinking, oh Geez, I have to put in so much time to get there. That's not a realistic path for me. You take an example. Instead of being, say, a service advisor at an auto repair shop like this. Crash champions that I looked at, right? So this is a PE backed, fast growing company. They had something like 13 shops, you know, five or six years ago. Now they got over 600. They're growing so fast that people get promoted quickly. And if you're a service advisor, you have to know a lot about the cars, but you're not the one who's sweating under the hood doing the repairs yourself. So you basically go through a six month apprenticeship. You're making $60,000 a year during that period. That's a step probably for a lot of white collar workers, but you could double those earnings within a year and a half. That can be a path into management. And I'm told that those are jobs that pay over $200,000 a year. So if you're a white collar worker who's feeling kind of stalled, you might say, well, geez, am I willing to take a little step back in the short run to really boost my earnings in the longer term?

[Christopher Mims]

And the artificial intelligence factor plays in here too, right? Where blue collar jobs may be seen.

[Tim Higgins]

As more AI proof, that's a big factor that I think the youngest workers are waking up to. They do see AI's potential to automate a lot of entry level white collar jobs, and they're concerned about that. I think it's a tougher kind of mental hurdle to get over though, when you're 30 or 40 versus 20.

[Robbie Grammer]

Right?

[Tim Higgins]

Like it's one thing when you're 20 to say, I'm going to bypass college. It's a different kind of thing to have already invested in college and then sometime into your career take a different path.

[Alex Osil]

That was on the clock columnist Callum Borchers speaking to producer Daniel Bach. And that's what's news for this Wednesday afternoon. Today's show is produced by Pierre Vienna with supervising producer Tali Arbel. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.