DAVOS: US President Donald Trump on Wednesday abruptly stepped back from earlier threats to impose tariffs as leverage over Greenland, ruled out the use of military force, and said a deal was close to resolving a dispute that had threatened the most serious rift in transatlantic relations in decades.
Speaking during a brief visit to the World Economic Forum in Davos, Trump softened weeks of rhetoric that had shaken NATO allies and raised fears of a fresh global trade war.
Instead, the US president said Western Arctic allies were moving toward a long-term security and minerals agreement, aimed at strengthening missile defence capabilities and preventing Russia and China from gaining influence in the Arctic region.
“It’s a deal that everybody’s very happy with,” Trump told reporters after meeting NATO Secretary General Mark Rutte, calling it a permanent arrangement that would enhance security and access to critical minerals.
A NATO spokesperson confirmed that seven NATO allies in the Arctic would cooperate to safeguard regional security and block any economic or military foothold by rival powers.
Trump later said on his Truth Social platform that the US and NATO had formed a framework for a future Arctic deal and announced he would cancel tariffs scheduled for February 1 as part of the understanding.
Denmark welcomed the shift in tone but stressed the importance of diplomacy and sovereignty. Foreign Minister Lars Lokke Rasmussen said any agreement must respect Danish territorial integrity and the right of the Greenlandic people to self-determination.
Trump said Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff would continue negotiations.
Earlier, Trump acknowledged market concerns over his tariff threats and explicitly ruled out force, saying, “I don’t want to use force. I won’t use force.”
Financial markets reacted positively, with US stocks rallying following the announcement.