Trump says Greenland deal framework discussed, retreats from tariff threats

President Donald Trump announced that he has “formed the framework of a future deal” with NATO Secretary General Mark Rutte regarding Greenland.

He also said that he will not impose tariffs on European allies, something that had investors worried.

Trump shared the update on Wednesday at the World Economic Forum in Davos. He said the plan involves long-term cooperation in the Arctic region and could include joint control of the rare earth mineral resources beneath Denmark’s territory, as well as his “Golden Dome” missile system.

The announcement came after discussions in Davos, where NATO members talked about Arctic security.

Earlier in the day, Trump told attendees in Davos that he would not use force to acquire Greenland.

Markets reacted positively, with stocks rising and the dollar gaining strength after Trump’s remarks.

How we got here?
Tensions began after President Trump threatened a 25% tariff on European nations, including Denmark, Germany, France, and the UK, until the US can acquire Greenland, starting February 1.

European leaders quickly pushed back, with France urging the EU to activate its powerful “trade bazooka.” 

Yesterday, the European Parliament paused ratification of the US–EU trade deal.

Today, EU officials were supposed to discuss tariff retaliation. But Trump has said that he is in talks with NATO.

However, if the US moves forward with new duties linked to Greenland, nearly $100 billion in US exports could face retaliation. The EU has already prepared a list of American goods it could target if negotiations collapse.

Meanwhile, business uncertainty is already rising as companies delay hiring and expansion plans.