Greenland 'will stay Greenland', former Trump adviser declares

Cohn is one of America's top tech bosses, a leader in the race to develop AI and quantum computing, and served under Trump as director of the White House National Economic Council.

In a sign of how seriously business leaders are taking the crisis, he warned "invading an independent country that is part of Nato" would be "over the edge".

He also suggested the president's recent comments about Greenland "may be part of a negotiation".

"I just came from a US congressional delegation meeting, and I think there's pretty uniform consensus with both Republicans and Democrats that Greenland will stay Greenland," he said.

Greenland would be happy for the US to increase its military presence on the island, he said, with the North Atlantic and Arctic Ocean "becoming much more of a military threat".

The US could also negotiate an "offtake" agreement for Greenland's vast yet largely untapped supplies of rare earth minerals, Cohn suggested.

"But I think, you know, invading a country that doesn't want to be invaded – that's part of a militaristic alliance, Nato – seems to me to be a little bit over the edge at this point," he said.

Cohn indicated the president may be overstating his demands as part of a negotiating tactic – something he says the president has done successfully in the past.

"You've got to give Donald Trump some credit for the successes he's had and he's many times tried to overreach to get something in a compromise situation," he said.

"He has overreached in advertising something to end up getting what he actually wants. Maybe what he actually wants is a larger military presence and an offtake."

The start of this year's World Economic Forum in the Swiss ski resort of Davos has been overshadowed by the president's increasingly aggressive stance on the arctic territory, with many political and business leaders alarmed about the potential geopolitical and economic impact. Trump is due to address delegates at the gathering on Wednesday.

But speaking on Tuesday morning, the US treasury secretary told reporters there had been an over-reaction to the president's comments.

"This is the same kind of hysteria we heard on April 2nd. There was a panic. And what I am urging everyone here is sit back, take a deep breath and let things play out," Bessent said.

"The worst thing countries can do is escalate against the United States. Back then only one country, China, escalated. We ended up in an unfortunate tit-for-tat.

"What the president is threatening on Greenland is very different than the other trade deals so I would urge all countries to stick with their trade deals. We have agreed on them and it does provide great certainty," he added.

Asked if the US was still an ally of Europe, Bessent accused the media of going to a "maximalist position".

"Of course Europe is an ally, the US Nato membership is unquestioned, we are partners in trying to stop the tragic war between Russia and Ukraine, but that does not mean that we cannot have disagreements on the future of Greenland," he said.

While Cohn expressed reservations about some of the president's actions, he said the US administration had "various different motives" for what they were doing.

He said Trump's decision to intervene in Venezuela was "a path" to disrupt the country's relationship with China, the biggest market for its oil, as well as Russia and Cuba.

Cohn also thinks that the president has become increasingly focused on the importance of rare earth minerals, noting that "Greenland has quite a supply" of the resources.

Those minerals are critical to the development of artificial intelligence (AI) and quantum computing – also a major talking point in Davos.