At the recent Davos World Economic Forum, California Governor Gavin Newsom made significant predictions regarding the potential impact of market fluctuations on U.S. President Donald Trump and his controversial stance on Greenland. Speaking exclusively to POLITICO, Newsom suggested that the economic pressures could lead Trump to reconsider his aggressive threats to seize the Arctic island from Denmark.
Newsom speculated that the most compelling aspects of Trump's forthcoming speech would not come from the prepared text but rather from off-the-cuff remarks influenced by recent financial news. “What’s not in his teleprompter will be the most interesting,” Newsom noted, hinting at potential volatility in Trump's tone based on what he absorbs from media outlets during his travels. He specifically mentioned Trump's changing attitudes towards global tariffs in response to market concerns, indicating that “the only thing I think that can move Trump...are the markets.”
He referred to previous instances where Trump moderated his approach following significant market reactions, such as his “Liberation Day” announcement in April, which had a noticeable impact on stock performance. “Remember what happens on the markets impacts every single person he brings over on the plane,” Newsom remarked, underscoring how the financial well-being of influential figures like Howard Lutnick and Steve Witkoff could sway Trump’s decisions.
Trump's recent threats to claim Greenland—a self-governing territory of Denmark—have alarmed European leaders, who are now urgently devising strategies to persuade him to withdraw his aggressive posture. This potential territorial dispute could strain the transatlantic relationship, which has been stable for nearly eighty years. Newsom's commentary sheds light on the broader implications of such geopolitical tensions, particularly in light of Trump's assertion that he would impose tariffs on nations obstructing his Greenland ambitions.
While in Davos, Newsom clarified that he does not intend to position himself as a direct opponent of Trump, despite being considered a potential candidate for the Democratic presidential nomination in 2028. “I’m here to express a different point of view,” he stated, emphasizing the historical significance of Trump’s presidency while also highlighting his unpopularity. Newsom remarked, “His policies are undeniably unpopular across the political spectrum in America,” indicating that Trump's current ratings are even lower than during his first term.
During his discussion with POLITICO, Newsom elaborated on the tumultuous relationship between himself and Trump, recalling a time when their interactions were more amicable. “That’s what happens when he starts calling you names... like 'Newscum',” Newsom remarked, reflecting on the deterioration of their rapport. He accuses Trump of engaging in a “war with California” and criticized the federal government for its lack of support during recent disasters affecting the state.
Newsom also pointed out that California has become a focal point for Trump due to its advancements in quantum computing and artificial intelligence, as well as the personal connections between California and Trump’s cabinet members and family. Despite their past cooperation during the COVID-19 pandemic, the current tensions have overshadowed their earlier collaboration.
As the situation evolves, the intersection of politics, economics, and geopolitics continues to shape the discourse around Trump’s administration and its impact on both domestic and international fronts.