Davos, Switzerland– United States President Donald Trump has abandoned threats to impose tariffs and ruled out the use of force in a developing dispute over Greenland, saying a framework for a deal has been reached during talks held on the sidelines of the World Economic Forum in Davos, Switzerland, on January 21.
Trump’s remarks followed weeks of sharp rhetoric that unsettled NATO allies and raised fears of a global trade confrontation. The Greenland issue, involving the Danish territory in the Arctic, had been viewed as a potential source of the most serious strain in transatlantic relations in decades.
Speaking after meeting NATO Secretary General Mark Rutte, Trump said Western Arctic allies were moving towards an agreement that would meet United States security interests and mineral access while countering Russia and China in the region. “It’s a deal that everybody’s very happy with. It’s a long term deal. It’s the ultimate long term deal. It puts everybody in a really good position, especially as it pertains to security and to minerals,” Trump told reporters. He added, “It’s a deal that’s forever.”
A NATO spokesperson said seven alliance members with Arctic territory would work together to safeguard their shared interests. “Negotiations between Denmark, Greenland, and the United States will go forward aimed at ensuring that Russia and China never gain a foothold economically or militarily in Greenland,” the spokesperson said.
Trump later said on his Truth Social platform that the United States and NATO had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” adding that “based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”
Denmark responded by calling for quiet engagement. Foreign Minister Lars Lokke Rasmussen told public broadcaster DR that discussions should take place through private channels. “What is crucial for us is that we get to end this with respect for the integrity and sovereignty of the kingdom of Denmark and the right of the Greenlandic people to self determination,” Rasmussen said. He confirmed speaking with Rutte but declined to disclose details of the discussions. Greenland’s government did not respond to requests for comment.
Trump said Vice President JD Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff had been assigned to continue talks. Earlier, addressing an audience at the Swiss Alpine resort, the Republican president acknowledged market concerns over his earlier threats. “People thought I would use force, but I don’t have to use force,” Trump said. “I don’t want to use force. I won’t use force.”
The shift in approach eased investor anxiety, triggering a rally on Wall Street, with the S and P 500 index rising by 1.2 percent, extending a rebound after the sharpest sell off in three months.
NATO allies had been unsettled by repeated warnings from Trump about taking control of Greenland from Denmark, a longstanding United States ally. During his year in office, Trump has frequently issued strong warnings that rattled markets, only to later soften or withdraw them.
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