WSJ What’s News: The World Plots Its Response to an 'Adversarial' America

Date: January 21, 2026
Host: Luke Vargas, The Wall Street Journal

Episode Overview

This episode of WSJ’s "What’s News" delves into global reactions as President Trump heads to Davos amid heightened U.S. antagonism on the world stage. The focus is on the dramatic fallout from Trump’s renewed push to acquire Greenland, the challenges faced by global and business leaders in responding, shifting alliances, and the tension between Trump’s foreign ambitions and domestic priorities. Additional stories include U.S. military moves in the Middle East, an unprecedented Supreme Court case concerning the Federal Reserve, and the growing labor-tech divide as CEOs embrace AI while workers feel left behind.

Key Discussion Points and Insights

1. All Eyes on Davos: Trump’s Greenland Ambitions

• Context: President Trump is set to attend the World Economic Forum in Davos, after a delayed departure from the U.S.

• Main Theme: Trump’s renewed interest in acquiring Greenland has overshadowed other WEF topics, even those as weighty as artificial intelligence and critical minerals.

• Atmosphere: The event, themed “A Spirit of Dialogue,” has turned tense and, according to on-the-ground reporter Jenny Strasberg, dominated by concerns about Trump’s intentions and the disruption of the world order.

  Quote: “Everyone talking about his plan to acquire Greenland, his doubling down on that despite the fact that global leaders are fighting back.”
  — Jenny Strasberg, 01:19

• Global Leaders Speak Out: Canadian Prime Minister Mark Carney delivered a rousing speech calling for unity and cooperation in response to perceived U.S. aggression, drawing a rare standing ovation.

  Quote: “We’re reminded that we live in an era of great power rivalry, that the rules-based order is fading.”
  — Mark Carney, 01:51

• Private vs. Public: Strasberg notes a disconnect between private anxiety among CEOs and officials and their more muted public comments.

  Quote: “There is a difference in how a lot of people are speaking publicly and how they are speaking privately... anger and frustration and worry about how this order is being disrupted.”
  — Jenny Strasberg, 02:14

2. A New, More Adversarial President Trump

• Shift in Tone and Strategy: Trump, now in his second term, is more openly combative with U.S. allies and focused on legacy-defining actions rather than compromise.

• Decision Points for Allies: Business and world leaders must now decide whether to continue appeasing the U.S. or push back more forcefully, with the potential for Europe and Canada to “decouple” from their traditional U.S. partnership.

  Quote: “He’s very at peace, ironically, being more adversarial with U.S. allies... he’s done playing nice, and he has his eyes on a target which is... Greenland, and he’s not going to take no for an answer.”
  — Damian Paletta, 03:17

  Quote: “Business leaders and world leaders have to decide whether to finally stand up to him and push back. And the question is, what do they do? What kind of retaliatory measures can they take? Can they band together?”
  — Damian Paletta, 03:37

3. Uncertainty for U.S. Allies: Mixed Messages on Greenland

• Negotiating Confusion: European leaders don’t know exactly who wields authority in the White House, as Secretary of State Marco Rubio strikes a more cautious tone than Trump, sowing confusion over whether military options are truly on the table.

  Quote: “One of the frustrations... is that they don’t know who to be negotiating with here... it’s hard for the Europeans to know exactly who to negotiate with.”
  — Damian Paletta, 04:58

4. Domestic Political Calculations: Economy or Greenland?

• Voters’ Priorities: There’s a looming question as to whether Trump’s focus on Greenland risks alienating voters more concerned about economic issues and affordability, especially with consequential midterm elections approaching.

• Legacy Mode: As a lame duck president, Trump is unconcerned with re-election, leading him to focus on actions he believes will cement his legacy—potentially at the expense of voter priorities.

  Quote: “His ambitions and goals might not completely overlap with the goals of the Republican Party or even the goals of voters... affordability and the economy... can decide elections, much more so than whether the United States controls Greenland.”
  — Damian Paletta, 06:03

  Quote: “Ironically, this midterm election idea is kind of forcing Trump to move faster because he knows he only has 10 or 11 more months of Republican control of Congress... that might make him even more adversarial.”
  — Damian Paletta, 06:36

5. Headline Updates (08:06–12:37)

U.S. Military Escalation in the Middle East (08:06)

• The U.S. is sending more military assets to the region, giving Trump “more options for a strike on Iran,” following his recent restraint.
  (No direct quotes, Just brief news update.)

Supreme Court Weighs Fed Independence (08:32)

• SCOTUS is hearing arguments on whether Trump can fire Fed Governor Lisa Cook, whose ouster is linked to contested mortgage fraud allegations.

• Treasury Secretary Scott Besant (at Davos) opposes Fed Chair Powell’s presence at the hearing:

  Quote: “If you’re trying not to politicize the Fed, for the Fed chair to be sitting there trying to put his thumb on the scale is a real mistake.”
  — Scott Besant, 09:01

• Senate Democrats Elizabeth Warren and Dick Durbin have demanded records pertaining to the criminal probe against the Fed, calling it “a serious misuse of power.”

DOJ Shake-Up (09:53)

• Lindsey Halligan, Trump ally and controversial federal prosecutor, steps down after her high-profile indictments (against former FBI director and NY AG, both dismissed) and contested appointment.

Trump Acts Against Wall Street Home Buying (10:20)

• Trump signs an executive order to limit large Wall Street investors from buying single-family homes, tasking agencies to end federal incentives for these purchases.

  (Treasury Secretary has 30 days to clarify affected parties and homes.)

Workplace Divide: CEOs vs. Workers on AI Adoption (11:08)

• AI & Productivity: CEOs tout AI’s benefits, but most workers say it creates more work and fails to save time.

• Survey Data: Reports show 85% of employees claim to save up to seven hours a week using AI, but most of that time is offset by correcting AI errors.

• Wider Skepticism: 6 in 10 Americans consider new tech “mostly a threat” to jobs and the economy.

  Quote: “A lot of the time that was saved, they wound up having to use to correct errors and rework AI generated content.”
  — Lindsay Ellis, 11:34

Memorable Moments & Notable Quotes

• “His approach here is that this is his second term, he’s done playing nice…”
  — Damian Paletta, 03:17

• “Can the new world order replace an old world order that was much more cooperative... How does it work if the U.S. isn’t a part of that?”
  — Damian Paletta, 04:19

• “For the Fed chair to be sitting there trying to put his thumb on the scale is a real mistake.”
  — Scott Besant, 09:01

• “About 6 in 10 characterized AI... as mostly a threat to the US Economy because of its potential to replace well-paid workers.”
  — Lindsay Ellis, 12:12

Timestamps of Key Segments

• 00:23–01:19 Davos readies for Trump and Greenland speculation dominates WEF conversations
• 01:19–02:41 Ground report from Jenny Strasberg on mood in Davos, Carney’s speech
• 03:17–04:41 Damian Paletta on Trump’s strategic shift and allies’ potential responses
• 04:57–05:43 Confusion for U.S. partners over Trump’s real intentions and ultimate objectives
• 06:03–07:10 Domestic priorities, midterms, and Trump’s legacy focus
• 08:06–08:32 U.S. military deployments and Iran crisis
• 08:32–09:53 Supreme Court considers Trump’s power over Fed governor; congressional oversight grows
• 10:20–10:58 Executive order against Wall Street in single-family home purchases
• 11:08–12:21 AI’s uneven impact: Upside for CEOs, downside for workers

Summary

This episode captures a world unsettled by an increasingly unpredictable and uncompromising United States. At Davos, President Trump’s Greenland gambit overshadows all, with allies debating whether to confront or further accommodate Washington’s new posture. While leaders ponder a post-American order, voters at home remain focused on core economic concerns. The episode rounds out with rapid-fire coverage of U.S. military maneuvers, institutional court battles, executive crackdowns on Wall Street’s hold over housing, and a workplace feeling the growing pains of AI adoption.

Listeners walk away with a sense of profound geopolitical recalibration, both at the world’s power tables and within America’s own shifting priorities.