Davos, Switzerland — U.S. President Donald Trump abruptly reversed course on threats to impose tariffs on European allies over Greenland, announcing a framework for a future deal on the strategic Danish territory following discussions at the World Economic Forum on January 21, 2026.
The move de-escalates tensions that had strained NATO relations and risked broader trade disruptions, as Trump shifted focus to long-term Arctic security amid growing Russian and Chinese activity in the region.
Trump, speaking during his appearance at Davos, explicitly ruled out military force in any effort to gain U.S. influence over Greenland. “People thought I would use force, but I don’t have to use force. I don’t want to use force. I won’t use force,” he stated in remarks to global leaders.
Earlier rhetoric from Trump had described Greenland as essential for national security, including demands for a “Golden Dome” missile-defense system and access to the island’s critical minerals. He had previously called the acquisition a “small ask” over a “piece of ice” and warned Denmark that refusal could have consequences.
Following a meeting with NATO Secretary General Mark Rutte, Trump posted on Truth Social that the U.S. and NATO had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region.” He confirmed the cancellation of tariffs on eight European countries — originally set for February 1 — that he had threatened as leverage.
Negotiations involving Denmark, Greenland, and the United States are set to continue, with Trump assigning Vice President JD Vance, Secretary of State Marco Rubio, and envoy Steve Witkoff to the talks. The framework aims to prevent Russia and China from establishing economic or military footholds in Greenland.
NATO’s Rutte emphasized the alliance’s priority on Arctic protection. “He is very much focused on what do we need to do to make sure that that huge Arctic region — where change is taking place at the moment, where the Chinese and the Russians are more and more active — how we can protect it,” Rutte said.
Denmark’s Foreign Minister Lars Lokke Rasmussen stressed respect for sovereignty and self-determination. “What is crucial for us is that we get to end this with respect for the integrity and sovereignty of the kingdom (of Denmark) and the right of the Greenlandic people to self-determination,” he noted.
Greenland officials did not immediately comment.
The dispute highlights Greenland’s strategic value in the rapidly changing Arctic, where melting ice opens new shipping routes and resource opportunities. The U.S. already maintains Pituffik Space Base (formerly Thule Air Base) there for missile warning and space surveillance.
Trump’s Davos speech, which lasted over an hour, included broader criticisms of European allies on issues like defense spending, trade, and energy policy. He positioned the U.S. as indispensable for Western security while downplaying the Greenland issue as non-threatening to NATO.
The reversal follows internal White House pushback against escalation, sources indicated, and came amid market relief — the S&P 500 recorded its largest one-day gain in two months after the tariff cancellation.
While details of the framework remain limited, it appears to prioritize enhanced U.S. military access and mineral partnerships over outright territorial acquisition, aligning with broader efforts to bolster Arctic defenses against adversarial powers.
This development underscores ongoing U.S. focus on countering great-power competition in the High North, where strategic assets like rare earth elements and positioning for missile defense are increasingly vital.
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