Trump Drops Greenland Tariff Threat, Announces Framework for a Deal

Trump Drops Greenland Tariff Threat, Announces Framework for a Deal

DAVOS, Switzerland — U.S. President Donald Trump on Wednesday backed away from threats to slap tariffs on European allies over Greenland, ruled out the use of force and said a framework was emerging for a long-term Arctic security and minerals deal that could defuse one of the sharpest transatlantic disputes in years.

Trump said the United States and NATO partners had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” and, based on that understanding, he would not impose tariffs that had been slated to take effect Feb. 1. The shift followed weeks of escalating rhetoric over the U.S. push for expanded strategic access in Greenland, an autonomous territory within the Kingdom of Denmark.

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  • Trump shelves planned tariffs tied to the Greenland dispute
  • Rules out force; touts path to a “forever” Arctic security deal
  • Denmark stresses sovereignty and Greenlanders’ right to decide
  • NATO to coordinate talks; markets rally on de-escalation

After meeting NATO Secretary-General Mark Rutte on the sidelines of the World Economic Forum, Trump said Western allies could strike a “long-term” arrangement that satisfies U.S. aims for a “Golden Dome” missile-defense layer and access to critical minerals while keeping Russia and China from gaining a foothold in the Arctic.

“It’s a deal that everybody’s very happy with,” Trump told reporters in Davos. “It’s the ultimate long-term deal… It’s a deal that’s forever.” Rutte later said the question of whether Greenland would remain within Denmark “did not come up” in his conversations with Trump, adding the focus was on protecting a rapidly changing Arctic where Chinese and Russian activity is rising.

European diplomats said the change in tone eases an open rift but leaves core issues unresolved, including how any arrangement could square Trump’s earlier calls for U.S. “ownership” with Denmark’s sovereignty and Greenlanders’ rights. Copenhagen urged quiet diplomacy. “What is crucial for us is that we end this with respect for the integrity and sovereignty of the kingdom and the right of the Greenlandic people to self-determination,” Danish Foreign Minister Lars Lokke Rasmussen told public broadcaster DR.

A NATO spokesperson said negotiations among Denmark, Greenland and the United States would proceed “aimed at ensuring that Russia and China never gain a foothold — economically or militarily — in Greenland.” No date or venue was announced. Trump said he had tasked Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff to take part in the discussions.

Earlier in the day, Trump sought to calm markets and allies by taking force off the table. “People thought I would use force, but I don’t have to use force. I don’t want to use force. I won’t use force,” he said in a WEF address that otherwise featured combative lines toward European partners. The S&P 500 rose 1.16%, its biggest one-day percentage gain in two months, after the comments.

Trump’s Davos appearance was dominated by the Greenland dispute and sharp critiques of Europe on energy, trade and immigration. He dismissed the territorial row as a “small ask” over a “piece of ice” and, at one point, repeatedly referred to Greenland as Iceland. He also warned allies, “You can say yes… or you can say no, and we will remember.”

Moscow reacted coolly. “What happens in Greenland is of absolutely no consequence to us,” Russian President Vladimir Putin told his National Security Council, according to Russian news agencies. European officials said the coming talks will test whether the White House’s new posture translates into a durable agreement or another short-lived pause before fresh demands.

Trump is due to meet Ukrainian President Volodymyr Zelenskiy on Thursday and is seeking support from world leaders for his Board of Peace initiative, which some diplomats say risks undercutting United Nations efforts even as it aims to resolve conflicts.

By Ali Musa

Axadle Times international–Monitoring.