After weeks of threats, market turmoil, and diplomatic tensions, Donald Trump announced on Wednesday a “framework for a future agreement” on Greenland, leading him to withdraw planned tariff threats against allies.
Speaking from the World Economic Forum in Davos, Switzerland, Trump shared on the social media platform Truth Social that he had held a “very productive meeting” with NATO Secretary-General Mark Rutte. During the meeting, they developed the framework for an agreement on Greenland and the Arctic region as a whole.
The president added that, based on the understanding reached, he would not impose the tariffs that were planned to come into effect on 1 February. However, Trump gave no further details about the nature of this framework.
Previously, Trump had accused Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland of playing a “very dangerous game” in Greenland by deploying military forces there. In response, he had threatened these US allies with new tariffs, including a 10% surcharge set to take effect in February, which could escalate to 25% by June.
Mark Rutte, when asked for clarification by AFP at Davos, declined to provide further information on the discussions about Greenland.
Trump also mentioned ongoing “additional discussions” regarding the US missile defence system known as “Golden Dome.” He revealed that negotiations on Greenland would involve key figures such as US Vice President JD Vance, special envoy Steve Witkoff, Secretary of State Marco Rubio, and others. According to Trump, these officials will report directly to him.
During his speech in Davos, Trump indicated he had ruled out using force to acquire Greenland for the first time in the ongoing dispute. “People thought I’d use force,” Trump stated. “I don’t need to use force. I don’t want to use force. I won’t use force.”
California Governor Gavin Newsom called Trump’s remarks “insignificant,” suggesting European resistance and the negative reaction of financial markets had softened the president’s tone.
In his speech, Trump acknowledged Wall Street had suffered a steep decline on Tuesday, which he attributed to tensions with Iceland, mistakenly conflating Iceland and Greenland. “The market dropped on Tuesday because of Iceland. So, Iceland has already cost us a lot of money,” he said in apparent confusion.
Since his return to power a year ago, the real estate mogul turned politician has upset the global balance of power on several fronts. In Davos, he used his platform to criticise various countries and Western leaders.
Trump accused Denmark, which has firmly rejected selling Greenland, of being “ungrateful.” Canada, in his words, “exists because of the United States” and “should be thankful.” He directed these comments at Canadian Prime Minister Mark Carney, who has sought to reduce Canada’s reliance on the US.
The president also mocked French President Emmanuel Macron, who had warned against “unacceptable” American attempts to subordinate Europe. Referring to Macron’s sunglasses, donned for medical reasons, Trump remarked, “I saw him acting tough with those fancy sunglasses.”
