Donald Trump drops tariff threat against Europe and touts ‘future’ Greenland deal

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Donald Trump said he had dropped his threat to impose new tariffs on European countries after reaching a “framework for a future agreement” on Greenland during talks with NATO Secretary General Mark Rutte.

The US president said on Wednesday that he had a “very productive” meeting with Rutte and would hold future talks and find a solution that “if implemented” would be “great” for the United States and NATO members.

“Based on this understanding, I will not impose the tariffs that were scheduled to take effect on February 1,” Trump wrote on Truth Social. “Additional discussions regarding the Golden Dome are taking place in relation to Greenland,” he added, referring to the planned missile defense system.

“We took that off the table,” Trump added in an interview with CNBC later on Wednesday, referring to his threat to impose tariffs on European countries that oppose US control of Greenland. “Because we pretty much had the concept of the deal.”

He added that the framework agreement could include Greenland’s natural resources. “They will participate in the mining rights, and so will we.”

Vice President J.D. Vance, Secretary of State Marco Rubio and the president’s special envoy Steve Witkoff will conduct further negotiations. Trump said the agreement would last “forever.”

His comments represent another reversal of the tariff threat and a significant softening of his position on Greenland. The actions came hours after he told an audience at the World Economic Forum in Davos that he would not use force to seize territory from Denmark – but asked Europe to support his plan.

He said Europeans have a choice about Greenland: “You can say yes and we will be very grateful, or you can say no and we will remember.”

“Discussions among NATO Allies on the framework referred to by the President will focus on ensuring Arctic security through the collective efforts of Allies, especially the Seven Arctic Allies,” NATO said.

The Western military alliance added that “negotiations between Denmark, Greenland and the United States will move forward with the aim of ensuring that Russia and China do not gain a foothold – economically or militarily – in Greenland.”

Rutte told Fox News on Wednesday evening that he and Trump had not discussed whether Greenland would remain part of the Kingdom of Denmark under that framework.

Trump’s threats to impose new tariffs on European countries have shaken transatlantic relations and raised fears of a new trade war, worrying markets.

The US president’s latest shift comes after Wall Street stocks rebounded on Tuesday when he threatened to open a new front in his global trade war. The S&P 500 index posted its worst day since October, while US government bonds were also under pressure.

Market volatility has tamed Trump before, including after his Emancipation Day tariff announcement in April, which sparked serious turmoil in stocks and Treasuries.

Stocks rose on Wednesday after he dropped the threat of new tariffs, with the S&P 500 index jumping 1.2 percent. The price of US government debt also rose, pushing the yield on the benchmark 10-year Treasury note down 0.04 percentage point to 4.25 percent.

Trump announced his new deal just hours after giving a lengthy and sometimes confusing speech in Davos.

He said in his speech that he “seeks immediate negotiations” to discuss the acquisition of Greenland from Denmark “just as we have acquired many other territories throughout our history.”

Denmark’s Foreign Minister Lars Løkke Rasmussen welcomed Trump’s social truth statement, saying: “The day ends better than the day it started.”

But he added: “It will not happen that the United States owns Greenland. This is a red line.”

Italian Prime Minister Giorgia Meloni, who has built a warm personal relationship with Trump, also praised the decision, but said “it is necessary to continue strengthening dialogue between allied countries.”

Denmark and Greenland have repeatedly insisted that the Arctic island is not for sale since Trump first expressed interest in 2019.

European Union leaders meet for an emergency summit in Brussels on Thursday to discuss their approach to talks on Greenland as concerns grow about strained relations with Washington.

Trump also used his speech to castigate an “unrecognizable” Europe, diminished by economic decline and unlimited immigration. “I love Europe…but it is not moving in the right direction.”

His coercion of Denmark and its European partners has drawn the ire of European officials, with many claiming that he has destroyed trust in transatlantic relations.

Canadian Prime Minister Mark Carney on Tuesday declared a “rupture” in the international order over Trump’s unbridled assertion of American power.

British Prime Minister Sir Keir Starmer, who decided not to attend the World Economic Forum, accused Trump of “dividing the world right now with material consequences” with his plans to seize Greenland.

Tensions between European and American officials flared in Davos on Tuesday evening, when US Commerce Secretary Howard Lutnick was heckled during dinner after making aggressive remarks that led to several guests walking out.

Among those who left the dinner early was European Central Bank President Christine Lagarde, people familiar with the matter said.

Earlier on Wednesday, hedge fund manager Ken Griffin criticized Trump, saying the United States had “weakened our relationship with our European allies in ways that I do not understand or appreciate.”

Additional reporting by Amy Kazmin in Rome