European Union leaders held a summit in Brussels on Thursday. They were expected to discuss how to respond to US President Donald Trump's demands to control Greenland.
Trump had warned he would slap tariffs on eight European countries that did not support his bid to take over the Danish territory. But he walked this back after he met with NATO Secretary-General Mark Rutte on Wednesday.
EU officials are seeking to maintain dialogue. Ahead of the meeting, Danish Prime Minister Mette Frederiksen said they are willing to discuss with the United States how they can strengthen security in the Arctic.
She said, "When Europe is not divided, when we stand together, and when we are clear and strong, also in our willingness to stand up for ourselves, then the results will show."
The Wall Street Journal reported on what was behind Trump's sudden U-Turn on Greenland on Wednesday.
It said Trump and his close aides held several days of "back-channel" talks with European leaders and the NATO chief. The report said the Europeans employed "a mix of enticements" like boosting Arctic security, and they also warned a "deeper rupture" in NATO would pose dangers for the US.
Plunging US financial markets may have also led Trump to pivot. The escalating tensions had sparked declines in US stocks, bonds and dollar. A move by a Danish pension fund to dump US Treasuries on Tuesday triggered a sell off.
The so-called TACO trade also came into play. The Wall Street term means "Trump Always Chickens Out" when the markets tumble.
One trader said the markets factored in a TACO move, and that was why the Dow Jones Industrial Average saw limited gains after Trump reversed himself on the Greenland tariffs.

Quiz 1:
What was the initial reason for US President Donald Trump's demands regarding Greenland?
A. To strengthen security in the Arctic region.
B. To control the Danish territory of Greenland.
C. To boost European financial markets.
D. To improve relations with NATO Secretary-General Mark Rutte.

Quiz 2:
According to The Wall Street Journal, what strategy did European leaders employ to influence Trump’s decision on Greenland?
A. Publicly criticizing Trump's actions.
B. Offering financial incentives to Denmark.
C. Utilizing a combination of incentives and warnings about a NATO rupture.
D. Ignoring Trump's demands and hoping he would back down.

Quiz 3:
What does the term "TACO" refer to in the context of the article?
A. An acronym meaning "Trump Always Chickens Out".
B. A trade agreement between the US, Denmark, and the EU.
C. A type of Danish pastry.
D. A secret meeting between Trump and European leaders.

[Answer block]
Answers:
Quiz 1: B
Quiz 2: C
Quiz 3: A