Wednesday, March 26, 2025

A bizarre tussle over Greenland

Denmark and Greenland are breathing a little easier after tensions over a planned trip to the island by US officials eased, but with President Donald Trump undeterred, it looks like a temporary respite.
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There's no escaping the Greenland saga.

A planned trip to the Danish territory by a US delegation expected to include National Security Advisor Mike Waltz and Energy Secretary Chris Wright has been pared back at the last minute, helping to ease a tense diplomatic moment.

How long the calm will last remains to be seen.

What had been a three-day swing is now down to a single-day visit by Vice President JD Vance and his wife to a US military base some 1,000 miles north of Greenland's capital, far from anticipated anti-US protests.

The delegation was originally to be led by Second Lady Usha Vance and joined by her son, resembling a family excursion. There were plans to watch a national dog sled race, and no mention of President Donald Trump's designs on the island.

The vice president then added to the surreal feeling by posting a video on X yesterday saying he'd come along as he didn't want to miss out on "all that fun."

The timing of the trip angered Greenlandic and Danish officials, with negotiations to form an island government still ongoing. Trump insisted the visit was about "friendliness, not provocation," even as locals saw it as having everything to do with flexing power.

In Denmark, Trump's rhetoric and tactics are seen as both absurd and threatening, testing the delicate balance of Greenland's semi-autonomous status.

Some Danes have responded with boycotts of American goods, and some supermarkets are labeling European products to nudge consumers toward buying local.

Behind the scenes, Danish officials are walking a diplomatic tightrope: pushing back just enough while avoiding a direct confrontation that could further provoke Trump.

The change of travel plans may be enough to allow both sides to claim a win. For now, Denmark and Greenland are breathing a little easier.

But with Trump undeterred, this looks like a temporary respite. Sanne Wass

WATCH: Greenland's voters unexpectedly picked a party backing a slower approach to independence in an election overshadowed by Trump's designs on the island. Sanne Wass reports from Nuuk.

Global Must Reads

The US said Russia and Ukraine agreed to a ceasefire in the Black Sea, even as the Kremlin said its involvement would depend on a series of preconditions, including sanctions relief on banks involved in trade in food products and fertilizers. Trump conceded it's possible Russian officials are "dragging their feet" in negotiations but he remained confident President Vladimir Putin intended to strike a deal to end his war in Ukraine.

Trump indicated he plans to limit exceptions to his tariff push, the latest cryptic hint about a proposed April 2 announcement of reciprocal duties on global trading partners. Meanwhile, US tariffs on copper imports could be coming within weeks, sources say, months earlier than the deadline for a decision.

Turkish President Recep Tayyip Erdoğan received Trump's endorsement as a "good leader," despite a week of protests and an exodus of foreign capital following a crackdown on the opposition. The remark, together with a rebound in Turkish assets, confirms that Turkey was always likely to face little external political pressure after Ekrem İmamoğlu, the popular mayor of Istanbul and Erdogan's main political rival, was detained and then jailed.

Friedrich Merz is facing a critical moment in his bid to become German chancellor, as disgruntled fellow conservatives worry he's making too many concessions in coalition talks with the Social Democrats. After abandoning campaign promises of fiscal consolidation to secure hundreds of billions of euros of debt-financed funding for defense, infrastructure and climate projects, he needs to walk a careful line before finalizing a deal on forming a government.

Indonesian President Prabowo Subianto has initiated a flurry of policy changes since taking office in October, vowing to attract investment and supercharge economic growth. Yet investors are growing increasingly concerned about the fiscal outlook and potential democratic backsliding, with stocks slumping and the rupiah tumbling to its lowest level since the 1997-1998 Asian financial crisis.

UK Chancellor of the Exchequer Rachel Reeves will blame global headwinds when she announces billions of pounds of cuts to government spending in a midyear fiscal update later today, amid growing criticism from within her own Labour Party that she risks alienating voters.

Rachel Reeves. Photographer: Hollie Adams/Bloomberg

Some Democratic and Republican lawmakers, aid advocates and former US officials have voiced fears that by slashing foreign aid, Trump is giving China an easy opportunity to fill a vacuum and gain a soft-power advantage.

A South Korean court ruled opposition leader Lee Jae-myung didn't violate election laws, overturning a lower court's decision and boosting his chances of running in future presidential elections.

Canada and India are taking steps to cool diplomatic tensions as both sides look to strengthen trade ties to counter US tariff threats.

Trump is upending international markets with his aggressive and unpredictable escalation of tariffs on allies and enemies alike. What's really the message behind his trade wars? Join us for a Live Q&A tomorrow (March 27) at 10 a.m. EDT.

Sign up for the Washington Edition newsletter for news from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television.

Chart of the Day

Eddie Arthur has spent a quarter of a century traveling from farm to farm in West Africa's cocoa heartland to stare at trees and count how many pods they have. The service has hardly changed for decades but has become more important than ever as traders, hedge funds and chocolatiers try to gauge production in a market that has been rattled by an unprecedented shortage and huge price swings.

And Finally

Hundreds of Russian supermarkets have swept China in the past year, proving such a sensation that even Putin's government is planning a rival with 300 outlets. The stores are the latest example of how the "no limits" friendship Xi Jinping and Putin pledged days before Moscow's invasion of Ukraine is increasingly shaping Chinese consumers' everyday lives.

Russian supermarkets with the colors of the national flag and a cartoon of the Russian bear are taking China by storm. Photographer: Na Bian/Bloomberg

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