Trump Signals Greenland Deal Framework With NATO, Pauses Europe Tariff Threats
President says talks with NATO chief Mark Rutte produced a preliminary Greenland framework, easing transatlantic trade tensions ahead of February deadline
President Donald Trump said Wednesday that he has reached what he described as a “framework of a future deal with respect to Greenland” following talks with Mark Rutte, a move that prompted him to back away from looming tariff threats against European allies.
Speaking on the sidelines of the World Economic Forum in Davos, Trump said the discussions with the head of NATO had reduced friction over Greenland-related security and strategic issues — tensions that had previously spilled into trade policy. Link for more
As a result, Trump said he would no longer proceed with punitive tariffs on a range of European countriesthat had been scheduled to take effect Feb. 1. Those tariffs had been widely viewed in Europe as retaliation for resistance to U.S. pressure over Greenland and broader Arctic security arrangements.
While Trump offered few details on the substance of the Greenland framework, he framed it as an early-stage agreement focused on future cooperation rather than an immediate transfer of control or sovereignty. “We’ve formed the framework,” Trump said, signaling that negotiations will continue but without the immediate threat of trade escalation.
The tariff pullback marks a notable de-escalation in transatlantic tensions after weeks of warnings that U.S./EU trade could be drawn into a geopolitical dispute tied to Arctic access, defense posture, and strategic resources. European officials had been preparing countermeasures if the tariffs moved forward.
Trump and Rutte met during bilateral talks at Davos as NATO allies weigh growing strategic competition in the Arctic, heightened by climate change opening new shipping routes and increased interest in Greenland’s location and resources. Trump has repeatedly argued that Greenland is critical to U.S. national and economic security, while European leaders have pushed for any changes to proceed through alliance-based cooperation rather than unilateral action.
Markets and diplomats alike viewed Trump’s tariff reversal as a signal that the administration is willing to use trade pressure as leverage — but also to step back once political or security concessions are on the table. Further details on the Greenland framework are expected to emerge as NATO consultations continue in the coming weeks.
