Trump Withdraws Greenland Tariff Threat After Talks With NATO Chief on Future Framework

US President Donald Trump on Wednesday withdrew his threat to impose tariffs on European nations over Greenland after holding discussions with NATO Secretary General Mark Rutte, signalling a tactical softening of his position just hours after ruling out military action.

The announcement came following a bilateral meeting between Trump and Rutte on the sidelines of the World Economic Forum in Davos, where the two leaders discussed a potential future framework for Greenland and the broader Arctic region.

Shortly after the meeting, Trump announced via his Truth Social platform that the tariffs, which were scheduled to take effect on February 1, would no longer be implemented.

“Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote.

The US President said he chose to abandon the tariff threat because the proposed framework would benefit both the United States and its NATO partners. He added that discussions were continuing on Greenland’s so-called “Golden Dome,” a concept linked to security and strategic infrastructure in the Arctic.

Trump said the talks would be led by Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff, along with other officials as needed, and that the team would report directly to him.

Denmark’s Foreign Minister Lars Løkke Rasmussen welcomed Trump’s decision to drop the proposed tariffs, which had complicated Washington’s longstanding interest in acquiring Greenland.

Responding to the announcement, Rasmussen described it as a positive development, saying, “The day is ending on a better note than it began.”

NATO Chief Seeks to Reassure Trump

During the meeting, Rutte—who was appointed NATO Secretary General last year—sought to reassure Trump that the alliance would stand by the United States in the event of a crisis.

He pointed to NATO’s response following the September 11 attacks, when allied nations sent troops to fight alongside American forces in Afghanistan, some of whom never returned.

Trump expressed appreciation for the assurance and described Rutte as reliable, but suggested he remained uncertain about the resolve of US allies amid disputes surrounding Greenland.

Earlier in his Davos address, Trump had indicated that he was stepping back from earlier discussions about using military force to seize Greenland. He has repeatedly described the territory as vital to US national security due to its strategic location and the intensifying competition for influence in the Arctic.

Trump referred to Greenland dismissively as “a piece of ice,” arguing that there was little appetite for authority over the region in conventional terms.

“But now what I’m asking for is a piece of ice-cold and poorly located land that can play a vital role in world peace and world protection,” Trump said. “In comparison to what we have provided them with for many decades, it is a fairly modest request.”

Trump Avoids Naming Any Price for Greenland

When questioned by reporters during his meeting with Rutte, Trump declined to specify what the United States might be willing to pay for Greenland, despite referencing a future framework.

Instead of providing a figure, Trump dismissed the idea of a monetary price altogether.

“There’s a bigger price, and that’s the price of safety and security and national security and international security having to do with many of your countries,” he said. “That is the true cost. It costs a lot of money.”

When pressed to clarify a previous remark that the US would “remember” if Denmark refused to give up the territory, Trump remained evasive.

“You’ll have to figure that out for yourself,” he told a reporter.

EU Parliament Puts US Trade Deal on Hold

The European Parliament moved to suspend progress on its trade agreement with the United States just hours before Trump’s announcement.

According to a Bloomberg report, lawmakers on the parliament’s trade committee voted on Wednesday to halt the ratification process indefinitely, citing growing concern over Trump’s repeated threats related to Danish territory.

The chair of the parliament’s international trade committee said there was “no alternative” but to pause the EU–US trade agreement amid the escalating tensions.