President Donald Trump announced late Wednesday that he has reached a framework agreement with NATO on Greenland and will suspend threatened tariffs on eight European countries. Speaking after meetings at the World Economic Forum in Davos, Switzerland, Trump stated that he and NATO Secretary General Mark Rutte have formed the framework of a future deal with respect to the Arctic territory, prompting him to halt punitive trade measures that were scheduled to take effect on February 1.
The suspended tariffs had been announced just days earlier and would have imposed a 10 percent levy on goods from Denmark, Finland, France, Germany, Norway, Sweden, the Netherlands, and the United Kingdom, with rates set to climb to 25 percent by June. Trump had linked these tariffs directly to European opposition to his push to acquire Greenland, an autonomous Danish territory of significant strategic importance in the Arctic region.
In a significant shift from his earlier rhetoric, Trump explicitly ruled out using military force to take control of Greenland. During his speech at the World Economic Forum, he stated that while the United States would be frankly unstoppable if it chose to use excessive strength, he would not pursue that path. This marked a notable de-escalation from previous statements that had alarmed European allies and sparked diplomatic tensions.
NATO spokeswoman Allison Hart confirmed that the Trump-Rutte meeting had been productive, explaining that the framework will focus on ensuring Arctic security through the collective efforts of allies, especially the seven Arctic nations within the alliance. She added that negotiations between Denmark, Greenland, and the United States will proceed with the goal of preventing Russia and China from gaining any economic or military foothold on the island.
Danish Foreign Minister Lars Løkke Rasmussen welcomed the developments, stating that the day ended on a better note than it began. He expressed satisfaction that Trump had ruled out force and paused the trade war, while calling for dialogue to address American security concerns in the Arctic while respecting the red lines of the Kingdom of Denmark. The Danish government has consistently maintained that Greenland is not for sale.
Trump announced that Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff would lead negotiations on behalf of the United States. However, diplomatic sources told CBS News that no agreement exists for actual US control or ownership of Greenland. The framework reportedly focuses on enhanced security arrangements beyond the existing 1951 agreement that allows American military bases on the island. In a subsequent interview with CNBC, Trump notably described the framework as merely the concept of a deal.
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