‘Greenland tariffs will not be imposed’, Trump signals progress toward deal

WASHINGTON: US President Donald Trump on Wednesday retreated from earlier threats to impose tariffs linked to his push over Greenland, saying a preliminary framework for an agreement had been reached and ruling out the use of force.

Speaking during a visit to Davos, Switzerland, Trump said discussions with NATO allies had eased tensions over the Danish territory, after weeks of rhetoric that unsettled European governments and raised fears of a trade confrontation. He had previously warned of tariffs on exports from several European countries as leverage in the dispute.

After talks with NATO Secretary General Mark Rutte, Trump suggested Western allies were moving toward a long-term arrangement focused on Arctic security, missile defense and access to critical minerals, while countering Russian and Chinese activity in the region. He described the emerging understanding as beneficial for all parties and emphasized its security dimension.

Rutte later clarified that Greenland’s political status and its ties to Denmark were not discussed in his meeting with Trump, saying the US president concentrated instead on safeguarding the Arctic amid growing geopolitical competition.

Despite Trump’s softer tone, uncertainty remains over what form any agreement might take, particularly given his past statements expressing interest in US ownership of Greenland, an idea firmly rejected by both Denmark and Greenland’s leadership. A NATO spokesperson said future talks among Denmark, Greenland and the United States would aim to prevent Russia or China from gaining economic or military influence on the island.

Trump said further discussions would involve Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff, though no timeline or venue has been announced.

On social media, Trump said the US and NATO had established the basis for a future deal covering Greenland and the wider Arctic region, adding that planned tariffs set for February 1 would no longer go ahead. The move marked another reversal from earlier hardline positions taken during his second term.

Denmark welcomed the apparent de-escalation but stressed that any outcome must respect Danish sovereignty and Greenlanders’ right to self-determination. Danish Foreign Minister Lars Lokke Rasmussen said the matter should be resolved through quiet diplomacy rather than public statements.

Earlier, addressing the World Economic Forum, Trump acknowledged that markets had reacted negatively to his threats and reiterated that he had no intention of using military force. His comments helped lift US stock markets after recent volatility linked to the Greenland dispute.

While Trump’s remarks dominated his Davos visit, European diplomats cautioned that the underlying disagreements have not been resolved, even if the immediate risk of a public rupture among allies has eased.