Image source, EBU

We've just heard from Canadian Prime Minister Mark Carney, who's been speaking at the World Economic Forum in Davos.

On the subject of Arctic sovereignty, Carney tells the forum "we stand firmly with Greenland and Denmark and fully support their unique right to determine Greenland's future".

He says that Canada's commitment to Nato's Article 5 - which states an armed attack against one or more members is considered an attack against all - is "unwavering".

Carney adds that Canada also "strongly opposes" tariffs over Greenland.

Jonathan Josephs
BBC business reporter

Approval of the EU US trade deal that was agreed in July is set to be suspended by the European Parliament, according to sources close to the parliament’s international trade committee.

The suspension is set to be announced in Strasbourg tomorrow afternoon.

An agreement between President Trump and Ursula von der Leyen was made at Trump’s golf course in Scotland in July.

It lowered US tariffs on all its imports from the EU to 15%, which was seen as a good deal at the time given Trump has been threatening 30% import taxes.

However the deal needs approval from the European Parliament, but the international trade committee haven’t finished scrutinising it yet.

On Saturday, within hours of President Trump’s threat of US tariffs over Greenland being issued influential German MEP Manfred Weber said “approval is not possible at this stage”.

While the deal was being finalised the EU suspended its retaliatory tariffs on €93bn worth of goods that it buys from the US.

That suspension ends on 6 February and without either an extension or parliamentary approval of the deal, EU tariffs on US goods will come into force on 7 February.

Image source, EPA

US Treasury Secretary Scott Bessent has reiterated his warning to European countries to not retaliate over President Trump's plan to take over Greenland.

Speaking at the World Economic Forum in Davos, he said European leaders should "have an open mind".

"I tell everyone, sit back. Take a deep breath. Do not retaliate. The president will be here tomorrow, and he will get his message across."

This echoes the comments we heard from him earlier - here's a reminder.

Trump would be having meetings, Bessent said.

The "worst thing" countries could do is escalate against the United States, he added.

"This has been in the minds of American presidents for more than 150 years," he said, referring to the strategic value of Greenland.

California Governor Gavin Newsom's message for European leaders is that it's "time to buck up" in response to tariff threats from Donald Trump.

"It's time to get serious and stop being complicit. It's time to stand tall and firm, have a backbone," he tells reporters at the World Economic Forum in Davos.

Newsom, a Democrat, has been vocal in his criticism of Trump and his administration and is seen by some as a candidate for the 2028 Democratic presidential nomination.

Nick Edser
Business reporter

In addition to US stock markets falling in response to Trump's tariff threats, European stock markets are also trading lower for a second day in a row, with the main stock markets in the UK, Germany and France all down by about 1%.

On the currency markets, the US dollar has been falling sharply. The euro rose 0.8% against dollar to $1.1742 while the pound climbed 0.2% to $1.346.

Meanwhile the price of precious metals such as gold and silver – regarded as “safe havens” in times of uncertainty – continued to rise.

The gold price rose above $4,700 an ounce for the first time on Tuesday, hitting a record high of $4,737.10. Silver also hit a new high of $95.488 an ounce.

Simon Jack
Business editor

Image source, Getty Images

US stock markets fell as they got their first chance to react to a new tariff threat to Europe from Donald Trump.

Markets were closed yesterday for Martin Luther King Day and nervous markets opened with investors selling shares in the US and Europe while buying the "go to" safe haven of gold.

But share prices are still not far off the all-time highs they set last week.

Markets seem to be assuming that there could be another climb down over its insistence on taking full control of Greenland - as we saw last summer when Trump reversed much of his swingeing "liberation day" tariffs on US imports from around the world.

There is possibly a danger of TACO (Trump Always Chickens Out) complacency as while the tariff spat was a negotiation over the level of tariffs, the Greenland dispute appears to be a more binary situation - either Trump gets what he wants or tariffs come in.

However, some have pointed to another big factor supporting US share prices - namely expectations that a new chair of the Federal reserve to replace Jerome Powell will be more likely to support the president's declared wish for lower interest rates - which usually give shares a boost.

Image source, UK Parliament

Foreign Secretary Yvette Cooper has been taking questions in the House of Commons over Greenland and Trump's threat to impose tariffs on the UK.

She says the prime minister will "always act in our national interest" which means pursuing Britain’s security, prosperity and values.

"That is what he has done at every stage and that is why he was so firm with the president about our support for the sovereignty of Greenland", Cooper adds.

Image source, Reuters

President Volodymyr Zelensky says he is "worried" that the ongoing Greenland dispute could divert focus away from the war in Ukraine, AFP reports.

"I'm worried about any loss of focus during a full-scale war," Zelensky told reporters.

He also called for Washington to engage in diplomacy with Europe saying he wants the United States to "hear Europe, to truly hear it in the format of diplomacy".

He adds: "I think that's what will happen and I strongly believe there won't be any major threats."

European leaders want face time with Trump to assess what he really wants to dopublished at 14:10 GMT 20 January

14:10 GMT 20 January

Nick Beake
Europe correspondent, reporting from Brussels

In her speech in Davos speech, Ursula von der Leyen reached back in time for examples of how Europe had prospered in the wake of instability trigged by a previous US administration.

She argued that here in 2026 an independent Europe was vital to survive the current seismic geopolitical changes.

But the reason EU leaders have not been more forceful in their response to President Trump’s Greenland tariff threat is that they are still hugely dependent on US military power and need its support for Ukrainian security as well as that of the wider continent.

That is why European leaders want face time with Donald Trump to try to assess what he really wants to do, rather than try to decipher from afar his cluster of latest social media broadsides.

In Davos, US Treasury Secretary Scott Bessent urged European nations to "relax" and "let things play out."

That is easier said than done.

Many in Europe are deeply concerned how Russia and China will benefit from the current row between western partners.

Sure enough, Russia foreign minister Sergey Lavrov has chimed in today, saying he could well understand why the US would want Greenland.

He likened the Danish territory to Crimea - Ukrainian land - whose annexation by Moscow in 2014 was a pre-curser to the full-blown Ukrainian invasion and the devastation and suffering we’ve seen over the past 4 years.

Image source, Reuters

Macron says that France and Europe are "obviously" attached to national sovereignty and independence.

He says this is "not an old fashioned" way to live, but rather not to "totally forget" lessons from World War Two, and to remain committed to co-operation.

The French president says that it is because of these principles that his nation have decided to join the military exercises in Greenland "without threatening anyone but just supporting an ally in another European country - Denmark".

He concludes his speech saying this year he will be committed "to try to deliver this global agenda in order to fix global imbalances" through co-operation.

"Here in the epicenter of this continent, we do believe that we need more growth, we need more stability in this world, but we do prefer respect to bullies, we do prefer science to obscurantism, and we do prefer rule of law to brutality," he says.

Macron has now finished speaking at Davos and is taking questions from the forum co-chair.

Macron turns to protectionism and tariffs.

He says competition from the US for trade agreements that "undermine our export interests, demand maximum concessions and openly aim to weaken and subordinate Europe", combined with an "endless accumulation of new tariffs" are "fundamentally unacceptable".

Macron adds that is even more so the case when these tarrifs are "used as leverage against territorial sovereignty".

He says Europeans are the only ones not protecting their own companies and markets "when the other countries don't respect the level playing field".

European competitiveness lags behind the US, he says. We need to address the lack of growth and underinvestment.

For context: A source close to French president Macron said this morning that Donald Trump's threats to impose 200% on French wine and champagne over France's intentions to decline the US leader's invitation to join his "Board of Peace" are "unacceptable".

Image source, EBU

French President Emmanuel Macron is now speaking at the Davos World Economic Forum.

"It's time of peace, stability and predictablilty," Macron says, which prompts laughter in the room.

He says it's clear that we are reaching a time of "instability and imbalance" - both in terms of security and from an economy point of view.

"Look at the situation where we are," he says, noting a "shift towards autocracy", along with wars around the world in 2024.

He says that "conflict has become normalised".

"It's as well a shift towards a world without rules, where international law is trampled underfoot, and where the only law that seems to matter is that of the strongest, and imperial ambitions are resurfacing," he adds.

French President Emmanuel Macron is now on stage at the World Economic Forum in Davos.

You can listen to his speech by clicking watch live at the top of the page - and stick with us for the key lines.

We've already heard from notable figures at the Davos World Economic Forum, with various others due to speak this afternoon.

Of those is French President Emmanuel Macron, who appeared to feature in screenshotted messages published by the US president earlier today.

Also speaking at Davos will be British Chancellor Rachel Reeves - a day after Keir Starmer's national address where he called Trump's threat to impose tariffs on the UK "very serious".

US Secretary of Commerce Howard Lutnick and US Treasury Secretary Scott Bessent will also be speaking at the forum, as will Canadian Prime Minister, Mark Carney.

We'll be across what they say and be ready to bring you the latest.

Charlotte Hadfield
Live editor

As international leaders gather in Davos, reactions to Trump's plan for Greenland continue to pour in.

We've taken a brief look back at what you need to know:

Trump's string of Truth Social posts:

• Trump has shared a screenshot that seems to show messages from French President Emmanuel Macron, where he requests to meet, Macron adding: "I do not understand what you are doing on Greenland"
• Another message appears to be from Nato chief Mark Rutte, who tells Trump he is "committed to finding a way forward" on Greenland
• Trump has also posted generated images of himself placing an American flag on Greenland

Europe's response:

• European Commission President Ursula von der Leyen has vowed that Europe's response over Greenland will be "unflinching, united and proportional"
• Speaking in Davos, she called Trumps's proposed tariffs "a mistake" and said Europe is "fully committed" to the security of the Arctic

'Europe needs to relax': What has Trump's team said?

• US Treasury Secretary Scott Bessent has urged European nations to "relax" and "let things play out"
• US Speaker Mike Johnson told UK Parliament "it is an objective and obvious truth that a strong America is good for the entire world"

Image source, TRUTH SOCIAL

Oliver Smith
Senior business reporter, in Davos

As momentum in Davos builds to President Trump’s arrival tomorrow, journalists here have been speaking to some of the president’s former advisers in attendance, to try to understand his actions and words on Greenland.

His former economics adviser, Gary Cohn, told us Trump’s threats could be a negotiating tactic.

I stopped Anthony Scaramucci, Trump’s former communications director, in a corridor here and asked him if he agreed with that.

"I don’t think this is a negotiating tactic. I think it’s attention seeking," he told me. "I think it’s going to resolve itself."

Scaramucci added: "The Europeans are going to have to put some teeth into their rebuttals to President Trump."

"He’s sending out in an effort to humiliate people like Rutte [Nato Secretary General] and Macron [with] their text messages.

"I think these leaders have got to coalesce and get tougher with him, because that’s really the only thing he responds to," he adds.

Does he think the president is serious about tariffs, or taking military action in Greenland? No, says Scaramucci.

"He’s not serious about a lot of things. That’s his nature."

Image source, AFP

Turning attention away from Davos briefly, we've also been hearing from Russian Foreign Minister Sergei Lavrov.

He says he has "no doubts" that Washington knows that Russia has "nothing to do" with Greenland.

The Russian foreign minister says there is "no proof" that Russia would seize Greenland.

Lavrov adds Russia will "monitor the serious geopolitical situation".

Image source, Reuters

Earlier we reported that Ukraine's President Volodomyr Zelensky is remaining in Kyiv for the moment due to Russian strikes overnight on his country overnight.

We can now bring you more on this, as Ukraine has clarified that Zelensky will only travel to the World Economic Forum in Davos if the US is prepared to sign documents on security guarantees and a prosperity plan, according to Reuters news agency.

"Certainly, I chose Ukraine in this case, not the economic forum, but everything can change at any moment. Because it is very important for Ukrainians to end this war," the Ukrainian president told reporters.

Nick Edser
Business reporter

US stock markets open later having been closed on Monday for a public holiday, giving investors there their first chance to react to the Greenland situation.

Early indications are they will open down by about 1.5-2%.

Meanwhile, the value of the US dollar has fallen against both the pound and the euro, while the yield on US government bonds – an indication of borrowing costs – has risen.

As mentioned earlier, European stock markets have fallen again, with the main stock markets in the UK, Germany and France all down by about 1.2-1.5%.

In contrast with Monday, the sell-off appears to be broad based, with very few shares on any of the indexes having risen.

Gold – the traditional “safe haven” asset in times of uncertainty – has hit yet another record high of $4,731.34 an ounce.

Image source, SANDER KONING/EPA/Shutterstock

The Dutch foreign minister says the Netherlands "cannot rule out a response" if Trump's threatened tariffs come into place.

David van Weel says Trump's retaliation is because of a "misunderstanding", after a handful of Nato troops were sent to Greenland to "reinforce" the security on the island - not "as a deterrent against the US".

He tells the BBC that this clarification should help President Trump see that "these tariffs don't make any sense" and they need to come "off the table".

"We need to make clear that this is not the way to deal with allies. We cannot rule out a response if those tariffs are really imposed on us."