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President Donald Trump on Wednesday abruptly scrapped the tariffs he had threatened to impose on eight European nations in a bid to pressure Denmark and NATO into ceding control of Greenland, reversing course hours after insisting the United States wanted the island “including right, title and ownership.”
In a post on his social media platform, Trump said he had reached a “framework of a future deal” with NATO leadership on Arctic security, potentially defusing a confrontation that had rattled markets and raised alarms about the stability of the transatlantic alliance.
Trump offered few details but said additional discussions were underway involving Greenland and his proposed “Golden Dome” missile defense system — a multilayered, $175 billion initiative that would place U.S. weapons in space for the first time.
The announcement came shortly after NATO Secretary General Mark Rutte publicly reaffirmed that the alliance would defend the United States if it were attacked — an assurance Trump has repeatedly questioned.
“You can be assured, absolutely,” Rutte told Trump during a post-speech appearance at the World Economic Forum. Not long afterward, Trump posted that the tariffs were off.
Tariffs dropped after brinkmanship
The tariffs, which Trump had threatened to impose on Denmark and seven other NATO allies, were to begin at 10% next month and rise to 25% in June unless negotiations over Greenland moved forward. European governments had angrily rejected the ultimatum, insisting Greenland was not for sale.
Trump has a history of threatening sweeping tariffs only to retreat after markets react sharply. In April, he softened proposed global import levies after financial markets tumbled.
But the Greenland dispute carried higher geopolitical stakes. Trump used his Davos address to cast Greenland as essential to U.S. national security, dismissing it as “cold and poorly located” while warning NATO not to interfere.
“We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable,” Trump said — before adding, “But I won’t do that, OK?”
Despite pledging to defend NATO, Trump has repeatedly questioned whether the alliance would come to Washington’s aid in a crisis, using that doubt to justify his aggressive posture toward Greenland.
Bases, not ownership, emerge as possible compromise
One idea discussed among NATO members as part of a possible compromise would involve Denmark and the alliance working with Washington to expand the U.S. military footprint on Greenland, according to a European official familiar with the talks who was not authorized to comment publicly.
It was unclear whether that proposal was part of the framework Trump announced, though the official said discussions were ongoing.
Trump has argued the U.S. needs Greenland to counter Russia and China in the Arctic, despite already operating a major military base there.
Danish Foreign Minister Lars Løkke Rasmussen welcomed Trump’s decision to rule out force and pause what he called “the trade war with Europe.”
“Now, let’s sit down and find out how we can address the American security concerns in the Arctic while respecting the red lines of the Kingdom of Denmark,” Rasmussen said in a statement.
A Danish government official earlier told The Associated Press that Copenhagen was open to security talks but stressed that Danish sovereignty over Greenland remains non-negotiable.
Greenland residents urged to prepare
Even as diplomatic tensions eased, Greenland’s government took precautionary steps. Officials published a crisis-preparedness handbook in English and Greenlandic urging residents to stock enough food, water, fuel and supplies to last at least five days.
“We just went to the grocery store and bought the supplies,” said Tony Jakobsen in the capital Nuuk, displaying bags filled with candles, snacks and toilet paper.
Jakobsen said Trump’s rhetoric felt threatening, even if he doubted military action was imminent.
“It’s better to be ready than not ready,” he said.
Other residents reacted more angrily.
“It’s insulting that he talks about the Greenlandic people and the Greenlandic nation as just an ice cube,” said Johnny Hedemann, who was buying a camping stove and instant mashed potatoes. “Now there’s another threat — and that’s Trump.”
Markets rebound, officials exhale
Financial markets that had fallen sharply on Trump’s tariff threats rebounded Wednesday following his reversal. U.S. officials privately expressed relief that the president appeared to be stepping back from a confrontation that risked damaging broader foreign-policy goals.
Trump’s Davos speech had originally been billed as focused on lowering U.S. housing costs, part of a broader effort to address cost-of-living concerns ahead of November’s midterm elections. Greenland instead dominated the address.
Trump also repeatedly confused Greenland with Iceland during the speech, mixing up the two at least four times.
“This enormous unsecured island is actually part of North America,” Trump said. “That’s our territory.”
When he did turn to housing, Trump suggested skepticism toward affordability measures, arguing that falling home prices would erode homeowners’ sense of wealth.
A pause, not an end
While Trump’s decision to drop the tariffs eased immediate pressure on NATO, it remained unclear whether the broader dispute over Greenland had truly been resolved or merely postponed.
Before backing down, Trump had issued a stark warning to Denmark and the alliance.
“You can say yes, and we will be very appreciative,” he said. “Or you can say no, and we will remember.”
For now, European leaders are betting that negotiations — rather than threats — will determine what comes next in the Arctic.
