After repeated threats in the dispute over Greenland, US President Donald Trump has pulled back. On Wednesday he announced a preliminary agreement with NATO on the Arctic. As a result, he said he would abandon the punitive tariffs against Germany and seven other European countries that had been scheduled for February 1. The announcement was made on his platform Truth Social. NATO Secretary General Mark Rutte said he and Trump had discussed ways for NATO to secure the entire Arctic region. Denmark and other countries expressed relief, while US markets reacted with gains.
The development followed talks between Trump and Rutte on the sidelines of the World Economic Forum in Davos. Trump wrote on Truth Social that he had agreed with Rutte on a “framework for a future agreement” concerning Greenland and the broader Arctic. “This solution, if it comes together, will be great for the United States of America and all NATO nations,” Trump said. Based on this, he wrote, he would “not impose the tariffs that were set to take effect on February 1.”
The issue of Greenland’s sovereignty “did not come up” during the meeting, Rutte told US network Fox News. The US president was focused instead on protecting the “vast Arctic region,” he said, pointing to developments such as increased activity by Russia and China. Rutte praised the talks. “I think it was a very good meeting,” he told AFP in Davos, while noting that “there is still a lot of work to do.”
It remained unclear what the agreement on Greenland would specifically entail. Trump told reporters in Davos that it delivered “everything we wanted,” saying it would have “unlimited” effect and cover areas such as military security and resources.
According to a NATO spokesperson, substantive negotiations have not yet begun. The United States, Denmark and Greenland now plan to discuss how to prevent Russia and China from “gaining a foothold” on the Arctic island. Trump has argued in the conflict: “If we don’t take Greenland, Russia or China will, and I’m not going to let that happen.”
Trump also said further talks were planned on the proposed US missile defense system known as Golden Dome, insofar as it affects Greenland. He wrote that Vice President JD Vance, Secretary of State Marco Rubio and his special envoy Steve Witkoff would take the lead on the issue. Trump had repeatedly demanded full control over Greenland and again linked the idea in his Davos speech to “national and international security.” However, he clarified for the first time that he does not intend to seize the island militarily. Instead, he said he wanted to discuss the possibility of a “purchase.”
The framework agreement with Rutte does not involve “any money,” Trump said in Davos. Denmark has firmly rejected handing over the autonomous territory to the United States. As NATO secretary general, Rutte is in any case not in a position to negotiate territorial matters of member states.
Denmark and other EU countries expressed relief. Danish Foreign Minister Lars Løkke Rasmussen praised the US president’s “positive messages.” Dutch Prime Minister Dick Schoof described it on X as “positive that we are now on the path to de-escalation” and that additional tariffs were off the table. Italy’s Prime Minister Giorgia Meloni, who is close to Trump, made similar remarks.
In Greenland, the reaction was more cautious. “NATO has no right under any circumstances to negotiate anything without us, Greenland,” said Aaja Chemnitz, one of the island’s two representatives in the Danish Parliament. “Nothing about us without us,” she added.
Traders on Wall Street reacted with relief to the easing of tensions, and the US stock market recovered much of Tuesday’s losses. The Dow Jones rose by as much as 1.21 percent, and both the Nasdaq and S&P 500 moved back into positive territory. Trump has previously backed down in tariff disputes with Europeans after sharp declines in US markets.
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