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U.S. President Donald Trump has dropped his controversial threat to impose tariffs on several European nations over their opposition to his push on Greenland, saying he has reached a “framework of a future deal” with NATO Secretary-General Mark Rutte following talks at the World Economic Forum in Davos, Switzerland.
Trump announced the shift on his social media platform, writing that a productive meeting with Rutte produced a preliminary agreement covering Greenland and the broader Arctic region. In light of that understanding, he said he will not go ahead with tariffs that were set to take effect on February 1 against countries including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.
Deal Framework but Few Details
Trump did not provide detailed terms of the so-called framework. He described it as a potential basis for a future agreement that would be “great for the United States of America and all NATO nations.”
He also said discussions would continue on what he calls the “Golden Dome” — a proposed missile defense initiative linked to Arctic strategic interests — but offered no specifics. Trump named officials including Vice President J.D. Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff as part of the negotiating team.
Rutte confirmed the announcement after Trump’s post, saying his message was “exactly to the point” when asked by reporters in Davos. Other NATO officials have been cautious about details, reflecting that sovereign decisions over Greenland rest with Denmark and Greenland’s own government.
Reversal After Global Backlash
The tariff threats had sparked alarm in Europe and beyond. Trump had said earlier he would start with a 10 percent levy and escalate to 25 percent unless European allies backed U.S. negotiations on Greenland — a semi-autonomous Danish territory with strategic value in the Arctic.
European leaders broadly condemned the threats as coercive. Some, including French President Emmanuel Macron and Swedish leaders, called the demands unacceptable. Their pushback helped solidify united resistance, and several NATO partners had planned emergency discussions on how to respond.
The European Parliament also delayed its approval of a key U.S.–EU trade deal in protest over the tariff threats, further highlighting the diplomatic costs of Trump’s initial stance.
Sovereignty and Security Emphasis
Despite the shift, Trump has maintained his argument that U.S. strategic interests in the Arctic justify intense focus on Greenland. In Davos, he reiterated that while the U.S. would not use military force to take the island, he wants to enter “immediate negotiations” on its future.
Denmark and Greenland have consistently rejected any suggestion that they would cede control of the territory, emphasizing that sovereignty is non-negotiable.
The announcement eased market fears of a transatlantic trade war; U.S. stock indexes rallied after Trump’s decision to withdraw the tariff threat.
