Trump Retreats on Greenland Tariff Threat After ‘Productive’ NATO Talks
Transatlantic tensions ease as Washington calls off planned tariffs amid diplomatic push at WEF Davos
U.S. President Donald Trump announced a surprising reversal on his threat to impose heavy tariffs on key European allies over the strategically vital territory of Greenland, saying a “framework of a future deal” had been agreed during a productive meeting with NATO Secretary-General Mark Rutte. The announcement came on the sidelines of the World Economic Forum in Davos, Switzerland.
Trump had earlier threatened to levy tariffs of 10% — potentially rising to 25% — on several European countries unless they supported U.S. objectives regarding Greenland, a self-governing Danish territory in the Arctic. That move had sparked an unusually sharp diplomatic backlash from Denmark and other NATO partners, risking a rift in transatlantic relations and even delaying ratification of a U.S.–EU trade deal.
In a social media post, Trump described his meeting with Rutte as “very productive,” saying the emerging framework would cover cooperation on Arctic security, missile defense initiatives and access to critical minerals, and would benefit both the United States and its NATO allies. He confirmed he would not impose the tariffs scheduled for February 1.
European leaders welcomed the de-escalation, insisting that Greenland’s sovereignty remains non-negotiable and that any security cooperation must respect Denmark’s authority and Greenlanders’ right to self-determination. While the exact content of the “framework” remains vague, the decision to shelve punitive tariffs helped ease market anxieties and softened transatlantic tensions at a crucial juncture.
