Trump drops Europe tariffs after Greenland security breakthrough at Davos
U.S. President Donald Trump backed away from plans to impose trade tariffs on several European nations on Wednesday, ending a standoff linked to his interest in Greenland. Speaking at the World Economic Forum in Davos, the American leader explicitly excluded the use of force and signaled a potential deal with Western allies regarding Arctic security and resources.
The announcement followed a pivotal meeting with NATO Secretary General Mark Rutte. This shift comes after weeks of harsh rhetoric that strained transatlantic ties and fueled fears of a new global trade war.
Trump stated that Western allies could reach an agreement meeting U.S. security interests without altering Greenland's territorial status. The proposed framework focuses on developing missile defense systems and securing access to critical minerals.
"It is a deal that makes everyone happy. It is a long-term deal that puts us all in a good position, especially regarding security and minerals," Trump told reporters in Davos.
NATO Secretary General Mark Rutte later clarified that Greenland's sovereignty under Denmark was not questioned during the talks. Instead, the focus remained on protecting the Arctic region from increasing Russian and Chinese influence.
Tariffs withdrawn based on understanding
In a post on his Truth Social network, Trump announced that the U.S. and NATO have established the "framework of a future agreement" for Greenland and the broader Arctic. Consequently, the tariffs scheduled for February 1 against eight European nations will not be implemented.
Financial markets responded positively to the news. The S&P 500 recorded its largest daily gain in two months, recovering from previous losses triggered by Trump's earlier trade threats.
European officials welcomed the de-escalation but noted that the underlying dispute remains. It is still unclear how a final agreement will satisfy Trump’s previously expressed desire for U.S. "ownership" of the territory, a concept rejected by local authorities.
Denmark demands respect for sovereignty
Copenhagen maintains that the issue must be handled through quiet diplomacy rather than public declarations. Danish Foreign Minister Lars Lokke Rasmussen emphasized that respect for the sovereignty of the Kingdom of Denmark and the Greenlandic people's right to self-determination is non-negotiable.
The government of Greenland has not yet issued an official comment on the latest developments.
At Davos, Trump dominated the agenda with a speech criticizing European allies on energy and trade. While excluding force, he reiterated U.S. military superiority and warned he would "remember" those who refuse to cooperate.
The U.S. delegation, including Vice President JD Vance and Secretary of State Marco Rubio, will continue negotiations. Sources suggest Trump views Greenland as a potential political legacy, aiming for a territorial expansion not seen since Alaska and Hawaii joined the union in 1959.
Translation by Iurie Tataru
