Trump unveils Greenland framework deal, withdraws tariffs in major policy move

Trump retreats from Greenland seizure threat, touts open-ended Arctic security deal and lifts tariff warnings

DAVOS, Switzerland — President Donald Trump backed down from threats to seize Greenland by force from U.S. ally Denmark, announcing a vague security arrangement he said delivers “everything we wanted” and lifting promised tariffs on European partners that opposed the move.

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Speaking at the World Economic Forum, Trump said the agreement was negotiated with NATO Secretary-General Mark Rutte and would last “forever,” describing it as a framework to safeguard the Arctic territory’s security, minerals and “everything else.” Hours earlier, he had appeared to remove the threat of force to take the island.

“I think it puts everybody in a really good position, especially as it pertains to security, and minerals and everything else,” Trump told reporters, casting the reversal as a win.

Rutte, in an interview with Fox News’ “Special Report with Bret Baier,” said the question of Greenland’s sovereignty “did not come up” in his talks with Trump, and offered few details beyond NATO’s focus on countering Russian and Chinese influence in the Arctic. The NATO chief separately told AFP that “there’s still a lot of work to be done.”

Trump said he would scrap tariffs of up to 25% that he had threatened against Denmark and other European allies — including Britain, France and Germany — which had deployed troops to Greenland in solidarity. A NATO spokesperson, Allison Hart, said Denmark, Greenland and the United States would negotiate on “ensuring that Russia and China never gain a foothold — economically or militarily — in Greenland,” echoing Trump’s stated concerns.

The apparent about-face eased tensions that had rattled European capitals and markets. Wall Street’s key indices rose after the remarks. The threats had triggered one of the most serious transatlantic rifts in decades, with warnings that unilateral action against a fellow NATO member could fracture the alliance.

In Copenhagen, where Trump’s bellicose language had shocked a country long seen as a steadfast U.S. partner, reaction was cautious but relieved. “Trump said that he will pause the trade war, he says, ‘I will not attack Greenland.’ These are positive messages,” Foreign Minister Lars Lokke Rasmussen told Danish public broadcaster DR. Rasmussen had flown to Washington last week to meet Vice President JD Vance, later saying the United States had not budged on seeking control over Greenland.

In Greenland, the prospect of an imposed arrangement stoked anxiety — and pushback. Aaja Chenmitz, one of two Greenlandic lawmakers in the Danish parliament, questioned why NATO would have a say over the island’s mineral wealth. “NATO in no case has the right to negotiate on anything without us, Greenland. Nothing about us without us,” she posted. In Nuuk, authorities distributed brochures on how to live through a crisis. “Greenland and Denmark had been firm that the island is not for sale,” said Lis Steenholdt, a 65-year-old pensioner.

Trump has argued repeatedly that the United States, as the key force in NATO, deserves Greenland because it would be responsible for defending the island against Russia or China, even though neither country holds a claim there. Addressing Davos for the first time in six years, Trump — who is 79 — called Denmark “ungrateful” but said the military option was off the table: “I don’t want to use force. I won’t use force. All the United States is asking for is a place called Greenland.” In his speech, he repeatedly referred to Greenland as Iceland.

The backdrop in Davos underscored broader unease with Washington. Canada’s Prime Minister Mark Carney drew a standing ovation after warning of a “rupture” in the U.S.-backed global order, and French President Emmanuel Macron said Europe would not be bullied. Trump later attacked both leaders, mocking Macron for wearing sunglasses — which the French president said was due to an eye condition.

Even as Trump hailed a “forever” deal, key elements remain undefined, including how Greenland’s elected representatives will be involved and whether any provisions touch on resource rights. As NATO’s Hart put it: the negotiations to ensure the Arctic’s security are only beginning.

By Abdiwahab Ahmed
Axadle Times international–Monitoring.