President Donald Trump on Wednesday abruptly dialled back weeks of threats over Greenland, ruling out both military force and punitive tariffs and declaring that a framework for a deal had been reached to resolve a dispute that had rattled NATO and financial markets alike.
Speaking at the World Economic Forum in Davos, Trump said negotiations with Denmark, Greenland and NATO allies were moving toward a long-term agreement that would secure Western interests in the Arctic while blocking Russian and Chinese influence. "It's a deal that everybody's very happy with," Trump told reporters after meeting NATO Secretary General Mark Rutte. "It's the ultimate long-term deal. It's a deal that's forever."
Trump on Truth Social:
Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region. This solution, if consummated, will be a great one for the United States of America, and all NATO Nations.
Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress. Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others, as needed, will be responsible for the negotiations — They will report directly to me. Thank you for your attention to this matter!
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The shift marked a sharp change in tone after weeks of aggressive rhetoric in which Trump floated tariffs and repeatedly suggested the United States should take control of the Danish territory. On Truth Social, he said Washington and NATO had formed a "framework of a future deal" and confirmed that tariffs scheduled for February 1 would not go ahead. Markets responded swiftly, with United States stocks rallying on relief that a trade confrontation had been averted.
Denmark welcomed the de-escalation but stressed that Greenland's sovereignty remained non-negotiable. Foreign Minister Lars Løkke Rasmussen said the matter should be handled through diplomacy rather than social media, emphasising respect for the kingdom's territorial integrity and the Greenlandic people's right to self-determination. Greenland's government did not immediately comment.
Trump said Vice President JD Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff would lead further talks. While NATO officials confirmed that Arctic allies would coordinate closely on security, the episode reinforced a familiar pattern in Trump's presidency: sweeping threats that unsettle allies and markets, followed by last-minute retreats once the pressure peaks...