What We're Watching

What We’re Watching: Trump says there’s a Greenland deal framework, Iran’s regime say protests have ended, Sheinbaum’s extraditions spark controversy at home

​U.S. President Donald Trump holds a bilateral meeting with NATO Secretary General Mark Rutte at the World Economic Forum (WEF) in Davos, Switzerland, January 21, 2026.

U.S. President Donald Trump holds a bilateral meeting with NATO Secretary General Mark Rutte at the World Economic Forum (WEF) in Davos, Switzerland, January 21, 2026.

REUTERS/Jonathan Ernst

Did Trump blink on Greenland?

After saying numerous times that he would only accept a deal that puts Greenland under US control, President Donald Trump emerged from his meeting with NATO Secretary General Mark Rutte singing a different tune. While the specifics of the deal are still being negotiated, Trump walked back his 10% tariff threat on European trade partners, and reportedly backed a proposal to respect Denmark’s sovereignty over the island. Trump may have concluded that he did not have the domestic support to take an aggressive approach– only 9% of Americans support the US using military force to annex Greenland, and markets temporarily plunged on his hardline stance. Meanwhile, the Europeans may have presented terms that Trump could sell as a win. However, it remains to be seen whether Trump will follow through on this version of the deal, and even if he does, it will still need to be sold to Greenlanders, who may protest the growing US presence on the island.

Iran’s regime says protests have ended

Protests against the Islamic Republic and its running of the Iranian economy are over, according to the country’s leaders, after a brutal crackdown that killed thousands of demonstrators. The regime had appeared particularly vulnerable: it faces a water crisis, growing threats from the US and Israel, and its proxy groups in the Middle East are much weaker than they were two years ago. Yet it appears to have weathered the protests, for now. Keep in mind, the internet is still down, so it’s difficult to verify this. The Islamic Revolutionary Guard Corps, an elite military force inside Iran, was central to the crackdown on protesters, and it appears to have bolstered their position in the regime’s hierarchy going forward.

Mexican president in hot water over extraditions

Mexico’s Claudia Sheinbaum is facing criticism at home after sending nearly 40 big time drug traffickers to the US to face criminal justice there. Sheinbaum says the move was a “sovereign decision,” but critics have questioned its legality and motivations. The extraditions come as the Trump administration ramps up threats to send the US military into Mexico to deal with the country’s powerful drug cartels. Sheinbaum faces a tough balancing act: doing enough to keep Trump at bay without appearing to capitulate. What’s more, experts say that any additional and significant effort to root out cartels could involve going after political elites, some of whom are affiliated with her own party.

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