Trump backs off European tariffs threat after reaching ‘framework of a future deal’ on Greenland with NATO

President Trump announced a preliminary framework agreement for a future deal on Greenland and the Arctic region after meeting with NATO Secretary General Mark Rutte in Davos, Switzerland. The announcement prompted him to cancel visits to other European countries originally scheduled for February.

The significant proclamation comes after a week-long geopolitical standoff that spooked international investors and strained relations with European allies.

Following weeks of recent geopolitical movements, the US president said the meeting had led to the “framework” of a potential agreement.

There was no suggestion of a deal that might meet Trump’s demand for “ownership” of Greenland, an ambition he restated at the World Economic Forum in Switzerland.

The US president posted on Truth Social on Wednesday stating: “We have formed the framework of a future deal with respect to Greenland, and in fact the entire Arctic region.”

Trump told reporters the new deal could involve mineral rights after meeting Nato Secretary Rutte at the Swiss Alpine resort.

Despite Greenland's strategic location, the US has further spoken about the island’s unexplored reserves, many of which are pivotal for technologies such as mobile phones and electric vehicles.

Trump said, “It’s the ultimate long-term deal as it puts everybody in a really good position, especially as it pertains to security and to minerals.”

Trump had previously dismissed the idea of leasing Greenland saying that you defend ownership, and you don’t defend leases.

However, Nato spokesperson Allison Hart said in a statement after meeting Trump and Rutte: “Negotiations between Denmark, Greenland, and the United States will proceed with the aim of ensuring that Russia and China will never gain a foothold-economically or militarily-in Greenland.”

Existing agreements between Denmark and the US further state that the US can bring as many troops as it wants to Greenland as needed. The US already has approximately 100 active-duty personnel permanently stationed at Pitufik Space base on the north-western tip of the territory.

Trump has been threatening to place a 10% tariff on all goods sent from the UK to the US starting February 1, increasing to 25% on June 1, until a deal is reached for Washington to purchase Greenland from Denmark.

According to the BBC, the same deal would apply to goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland.

In this regard, Trump said in his post on Truth Social: “Based upon his understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1.”

His first speech which was held at the World Economic Forum in Davos in six years reportedly confirmed that Trump was seeking immediate negotiations to acquire Greenland, though he pledged non-aggression regarding the territory.

In a speech a day earlier, French President Emmanuel Macron criticized Trump for imposing import taxes. The recent developments further demonstrate that the administration is moving towards a more formalized diplomatic process.

Nato chief Mark Rutte, whom Trump was due to meet in Davos, said that thoughtful diplomacy is required to resolve the crisis. The Greenland row has also strained relations with the European Union, which has threatened countermeasures after Trump pledged tariffs of up to 25% on eight European countries in response to their support for Denmark.

Dutch Prime Minister Dick Schoof said, “It is important that the US, Canada and Europe continue to work together within NATO to strengthen security in the Arctic region and counter threats from Russia and China.”