This classic risk management comes at a price. But that cost of strategic autonomy, of sovereignty, can also be shared. Collective investments in resilience are cheaper than everyone building their own fortress. Shared standards reduce fragmentation.

Complementarities are positive sum. The question for middle powers, like Canada, is not whether to adapt to this new reality. We must. The question is whether we adapt by simply building higher walls – or whether we can do something more ambitious. Canada was amongst the first to hear the wake-up call, leading us to fundamentally shift our strategic posture.

Canadians know that our old, comfortable assumption that our geography and alliance memberships automatically conferred prosperity and security is no longer valid. Our new approach rests on what Alexander Stubb has termed ‘values-based realism’ — or, to put it another way, we aim to be principled and pragmatic.

Principled in our commitment to fundamental values: sovereignty and territorial integrity, the prohibition of the use of force except when consistent with the UN Charter, respect for human rights.

Pragmatic in recognising that progress is often incremental, that interests diverge, that not every partner shares our values. We are engaging broadly, strategically, with open eyes. We actively take on the world as it is, not wait for the world as we wish it to be. Canada is calibrating our relationships, so their depth reflects our values. We are prioritising broad engagement to maximise our influence, given the fluidity of the world, the risks that this poses, and the stakes for what comes next.

We are no longer relying on just the strength of our values, but also on the value of our strength. We are building that strength at home. Since my government took office, we have cut taxes on incomes, capital gains and business investment, we have removed all federal barriers to interprovincial trade, and we are fast-tracking a trillion dollars of investment in energy, Al, critical minerals, new trade corridors, and beyond.

We are doubling our defence spending by 2030 and are doing so in ways that builds our domestic industries. We are rapidly diversifying abroad. We have agreed a comprehensive strategic partnership with the European Union, including joining SAFE, Europe’s defence procurement arrangements. We have signed twelve other trade and security deals on four continents in the last six months.

In the past few days, we have concluded new strategic partnerships with China and Qatar. We are negotiating free trade pacts with India, ASEAN, Thailand, Philippines, Mercosur. To help solve global problems, we are pursuing variable geometry— different coalitions for different issues, based on values and interests.

On Ukraine, we are a core member of the Coalition of the Willing and one of the largest per-capita contributors to its defence and security.

The European Union’s top official did not hold back in her warnings about President Donald Trump’s threat to impose fresh tariffs on countries opposing his push for the U.S. to acquire Greenland, a semiautonomous Danish territory.

European Commission President Ursula von der Leyen called Trump’s threats “a mistake” and questioned U.S. trustworthiness, saying that the EU-U.S. trade deal from July had to “mean something.”

“Arctic security can only be achieved together. This is why the proposed additional tariffs are a mistake, especially between long-standing allies. The EU and U.S. 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,” Von der Leyen said.

“We consider the people of the United States not just our allies, but our friends. And plunging us into a dangerous downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape,” she added, vowing the EU’s response would be “unflinching, united and proportional.”

MOST AMERICANS SAY ‘NO’ TO GREENLAND TAKEOVER, WITH EVEN REPUBLICANS SPLIT: POLL

French President Emmanuel Macron also addressed the issue at Davos, saying the tariffs could force the EU to use its anti-coercion mechanism against the U.S. “for the very first time,” The Associated Press reported. The outlet noted that he argued that allied countries should be focused on bringing peace to Ukraine and ending the nearly four-year war with Russia.

Trump announced on Saturday that starting on Feb. 1, Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland would face a 10% tariff on all goods imported to the U.S. The rate will then increase to 25% on June 1. The president added that “this tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland.”

The president doubled down on his argument that U.S. control of Greenland was necessary to protect national security and American interests, saying that the acquisition would be key to developing the Golden Dome, a cutting-edge missile defense system meant to intercept threats targeting the American homeland.

US CONGRESSIONAL DELEGATION VISITS DENMARK AMID BACKLASH OVER TRUMP’S PUSH TO ACQUIRE GREENLAND

The Trump administration’s rhetoric about Greenland has caused friction between the U.S. and several allies, who warn that annexing the territory could burn diplomatic bridges. However, on Tuesday, Treasury Secretary Scott Bessent said U.S. relations with Europe remain strong and encouraged trading partners to “take a deep breath,” the AP reported.

Leaders from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the U.K. issued a joint statement on Tuesday, affirming their commitment as NATO members to “strengthening Arctic security as a shared transatlantic interest.” They also expressed their solidarity with Denmark and Greenland.

“Tariff threats undermine transatlantic relations and risk a dangerous downward spiral. We will continue to stand united and coordinated in our response. We are committed to upholding our sovereignty,” the statement read.

Some European nations recently tried to flex their muscles with a brief troop deployment to Greenland. France, Germany, Sweden and Norway participated in a two-day exercise to bolster the Danish territory’s defenses amid Trump’s threats. Germany deployed a reconnaissance team of 13 personnel, France sent 15 mountain specialists and Sweden, Norway and Britain sent three, two and one officers, respectively, according to Reuters.

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In text messages that Trump published on Truth Social, Macron suggested a meeting of the Group of Seven (G-7) nations in Paris after the conference in Davos. The AP reported that an official close to Macron confirmed the authenticity of the text exchange. As of Jan. 20, no such meeting had been announced.

Fox News Digital reached out to the White House for comment.

The Associated Press and Fox News Digital’s Greg Norman-Diamond and Gillian Turner contributed to this report.

By&nbspeuronews

Published on
20/01/2026 – 17:19 GMT+1

In an exclusive interview in the margins of the World Economic Forum in Davos, Azerbaijan’s president Ilham Aliyev said that the world order is changing.

“International relations are entering a new era, an era where it is not the rule of law, but the rule of strength that is ruling the situation”, said the president.

“Every country should base their strategy and policy on their potential”, he added.

Asked about the situation in the Southern Caucasus and the vicinity of Azerbaijan, he hoped “it will not deteriorate”.

“I hope every country will contribute to regional stability and security”, said the president. “We’ve been concerned about some destabilisation in Iran, and for us stability, predictability and peace in the region is the biggest asset.”

Azerbaijan, known for its gas exports, this week started sending gas supplies to Germany and Austria.

“We already supply natural gas to 16 countries, and 10 of them are members of European Union”, explained Aliyev. “So by this coverage, by geographical coverage of supply of pipeline gas, Azerbaijan is number one in the world.”