DAVOS, Switzerland — President Donald J. Trump abruptly shifted his approach to the controversial U.S. push for influence over Greenland, reversing threats of tariffs and the possible use of military force and citing what he described as a “framework of a future deal” reached with NATO leadership on Arctic cooperation. 

The announcement came Wednesday at the World Economic Forum in Davos after Trump met with NATO Secretary General Mark Rutte, marking a dramatic retreat from weeks of escalating rhetoric that risked straining relations with key European allies, including Denmark and Greenland’s government. 

Trump had repeatedly insisted that Greenland — a semi-autonomous Danish territory strategically located in the Arctic — was vital to U.S. national security and economic interests. In recent days, he suggested imposing steep tariffs on up to eight European countries and did not rule out using military force to gain control, sparking urgent diplomatic pushback. 

Framework Deal Over Tariffs

In a Truth Social post from Davos, Trump said the framework reached with Rutte and NATO addressed security concerns in the Arctic and Greenland, prompting him to cancel tariff threats scheduled for Feb. 1 on countries opposing U.S. Greenland policy. 

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote, calling the arrangement potentially beneficial to the U.S. and NATO allies. 

Financial markets responded positively to the news, with major U.S. stock indices rallying on the perception that a diplomatic resolution may ease geopolitical risk. 

Trump declined to detail the deal publicly and said specifics would be released later. He said the framework would “last forever,” but offered few concrete terms, leading analysts to describe the announcement as vague and mostly conceptual. 

Military Force Rule-Out and Diplomatic Realities

During his Davos address, Trump explicitly said the U.S. would not use military force to obtain Greenland, a notable departure from earlier ambiguity. 

This shift followed internal discussions among senior White House aides who reportedly pushed against aggressive tactics such as military options and tariffs, instead favoring a diplomatic approach. Vice President J.D. Vance, Secretary of State Marco Rubio, and others advocated for moderation in the Greenland strategy. 

Danish and Greenland officials have consistently stated publicly that Greenland is not for sale, and Copenhagen reiterated that any transfer of sovereignty remains off the table, even as the United States seeks expanded cooperation on defense and economic activity in the region. 

European Reaction and NATO Dynamics

European leaders had openly condemned Trump’s earlier tariff threats and possible forceful tactics, and the situation prompted calls from the European Parliament to suspend approval of a U.S.–EU trade agreement in response. 

Denmark’s foreign minister, while welcoming the renunciation of military force, emphasized sovereign control and underscored that detailed negotiations would require Greenlandic and Danish approval. 

A NATO spokesperson said that discussions will focus on strengthening Arctic security collaboratively among allies to counter Russian and Chinese influence in the region. 

Public, Economic and Strategic Implications

Trump’s hardline rhetoric earlier in the debate — including threats of tariffs of 10% and up to 25% on trade with European partners — unsettled diplomatic ties and rattled financial markets before the reversal. 

Although the immediate crisis appears defused, analysts note that the substance of the “framework” remains unclear and the episode highlights ongoing friction over U.S. foreign policy methods and transatlantic relations. 

Trump also used his Davos platform to tout other domestic policy initiatives but drew criticism for remarks that critics said undermined traditional alliances and diplomatic norms. 

Sources: Reuters, Bloomberg