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Donald Trump said he is dropping his threat to impose new tariffs on European countries after signing a “framework for the future agreement” on Greenland in talks with NATO Secretary General Mark Rutte.
The US President said he had had a “very meaningful” meeting with Rutte and would look forward to future talks and find a solution that “if accomplished” would be “very good” for the US and NATO members.
“Based on this understanding, I will not impose tariffs effective February 1,” Trump wrote on Truth Social. “Additional discussions are being held regarding the Golden Dome as it relates to Greenland,” he said, referring to its planned missile defense system.
“We took it off the table,” Trump said in an interview with CNBC on Wednesday, referring to his threat to impose tariffs on European countries that oppose the U.S. takeover of Greenland. “Because we had a very good concept of the deal.”
He said the framework agreement could include Greenland’s natural resources. “They’re going to get into mineral rights and so are we.”
Vice President JD Vance, Secretary of State Marco Rubio and his special envoy Steve Witkoff will hold further talks. The agreement will last “forever,” Trump said.
The US President’s comments marked another reversal of the tariff threat and a significant softening of his stance on Greenland. He came just hours after telling an audience at the World Economic Forum in Davos that he would not use force to gain territory from Denmark – but asked Europe to support his plan.
Europeans had a choice instead, Greenland said: “You can say yes and we will appreciate you very much, or you can say no and we will remember.”
“Discussions among NATO Allies on the framework referred to by the President will focus on ensuring Arctic security through the collective efforts of Allies, particularly the seven Arctic Allies,” NATO said.
The Western military alliance said that “negotiations will proceed between Denmark, Greenland and the United States aimed at ensuring that Russia and China never gain a foothold – economically or militarily – in Greenland.”
Trump’s threats to impose new tariffs on European countries have rattled transatlantic ties and raised fears of a new trade war, leaving markets worried.
His latest change comes after Wall Street stocks fell on Tuesday as the US President threatened to open a new front in their global trade war. The S&P 500 stock index recorded its worst day since October, while US government bonds also came under pressure.
Trump has been tamed by volatility in the markets before, including severe turmoil in stocks and Treasuries after his “Liberation Day” tariff announcement in April.
Shares rose on Wednesday after the threat of a new levy was eased, with the S&P 500 jumping 1.2 percent. The price of US government debt also rose, pushing the yield on the benchmark 10-year Treasury note down 0.04 percentage points to 4.25 percent.
Trump touted his new deal just hours after giving a lengthy and sometimes rambling speech to the WEF.
He said in the speech that he was “demanding immediate negotiations” to discuss the acquisition of Greenland from Denmark, “just as we have acquired many other territories throughout our history”.
Danish Foreign Minister Lars Løkke Rasmussen welcomed Trump’s Truth Social statement, saying “the end of the day is better than the beginning of the day”.
But he added: “It’s not going to happen that the United States will own Greenland. That’s a red line.”
Italian Prime Minister Giorgia Meloni, who has enjoyed a warm personal relationship with Trump, also praised the decision, but said it was “essential to continue promoting dialogue between partner countries”.
Denmark and Greenland have repeatedly stressed that the Arctic island is not for sale since Trump first expressed interest in 2019.
EU leaders will gather for an emergency summit in Brussels on Thursday to discuss their approach to talks on Greenland, amid growing concerns about deteriorating relations with Washington.
Trump also used his speech to scold an “unrecognizable” Europe weakened by economic decline and unlimited immigration. “I love Europe… but it’s not going in the right direction.”
His pressure on Denmark and its European partners has angered European officials, with many claiming he has destroyed trust in transatlantic relations.
Canadian Prime Minister Mark Carney on Tuesday declared a “rupture” in the international system over Trump’s unbridled assertion of American power.
British Prime Minister Sir Keir Starmer, who chose not to join the WEF, accused Trump of “dividing the world at this moment with material consequences” through his plan to annex Greenland.
Tension flared between European and US officials in Davos on Tuesday night after US Commerce Secretary Howard Lutnick was heckled after making offensive remarks at a dinner, causing several guests to walk out.
European Central Bank President Christine Lagarde was among those who left the dinner early, according to people familiar with the matter.
Earlier on Wednesday, hedge fund manager Ken Griffin criticized Trump, saying the US had “degraded our relations with our European allies in ways I don’t understand or appreciate”.
Additional reporting by Amy Kazmin in Rome
