World
Trump backs down on Greenland tariffs, says framework for deal reached
European diplomats said Trump’s softened tone had helped defuse immediate tensions, though significant differences remain over his earlier demands for U.S. “ownership” of Greenland
U.S. President Donald Trump on Wednesday walked back threats to impose tariffs as leverage over Greenland, ruled out the use of force, and said a framework had been reached for a deal on the strategically important Danish territory, easing tensions that had alarmed U.S. allies.
Speaking in Davos after meeting NATO Secretary General Mark Rutte, Trump said Western allies could reach a long-term agreement covering Arctic security, missile defense and access to critical minerals, while countering growing Russian and Chinese activity in the region.
“It’s a deal that everybody’s very happy with,” Trump told reporters. “It’s a long-term deal. It puts everyone in a really good position, especially on security and minerals.”
Trump added that the agreement would be permanent, calling it “a deal that’s forever.”
The remarks marked a sharp shift from weeks of rhetoric that rattled NATO partners and raised fears of a broader trade conflict. Over the weekend, Trump had threatened escalating tariffs on exports from eight European countries, moves that had unsettled financial markets and transatlantic relations.
Rutte later said Greenland’s sovereignty was not discussed in his talks with Trump, underscoring that the U.S. president’s focus was on Arctic security rather than territorial ownership.
“He is very much focused on what we need to do to protect the Arctic region, where Russia and China are increasingly active,” Rutte said in an interview with Fox News.
European diplomats said Trump’s softened tone had helped defuse immediate tensions, though significant differences remain over his earlier demands for U.S. “ownership” of Greenland—an idea firmly rejected by Greenlandic leaders and Denmark.
A NATO spokesperson said negotiations between Denmark, Greenland and the United States would continue, aimed at preventing Russia or China from gaining an economic or military foothold on the island. No timeline was provided. Trump said Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff would lead further talks.
Denmark welcomed the de-escalation but emphasized the need to respect sovereignty. Foreign Minister Lars Løkke Rasmussen said any resolution must uphold Denmark’s territorial integrity and Greenlanders’ right to self-determination.
Earlier on Wednesday, Trump told the World Economic Forum that he would not use force to pursue his aims, acknowledging that markets had reacted negatively to his recent threats. U.S. equities rallied following his remarks, with the S&P 500 posting its biggest one-day gain in two months.
Sources have previously told Reuters that Trump’s push on Greenland reflects a desire to secure a lasting legacy by expanding U.S. strategic influence in the Arctic, a region increasingly central to global security and competition.