Trump Announces Greenland Deal Framework, Suspends Tariff Threats at Davos

US President chooses diplomacy over force, paving way for Arctic cooperation with allies

Thu Jan 22 2026
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DAVOS: US President Donald Trump said a framework for a potential agreement over Greenland has been established following talks with NATO Secretary General Mark Rutte, signaling a shift from confrontation to diplomacy as Washington seeks closer Arctic cooperation with Denmark and its European allies.

As part of the agreement, Trump confirmed that previously threatened tariffs on European allies would be suspended, signaling a shift toward diplomacy and constructive engagement.

Speaking at the World Economic Forum in Davos, Trump emphasized that the United States will pursue negotiations rather than military action, calling the framework a step toward securing Arctic cooperation with Denmark and NATO partners, according to BBC.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic region,” he said, adding that the tariffs scheduled to take effect on February 1 would now be off the table.

Denmark welcomed Trump’s commitment to avoid military force, describing his remarks as a “positive” sign. Greenland’s government also highlighted measures to strengthen local resilience and ensure sustainable development in the territory.

Trump underlined the strategic importance of Greenland for US and NATO security, and suggested that future cooperation could include joint defense initiatives and exploration of the island’s mineral resources. The announcement was well-received by financial markets, with Wall Street opening higher following the news.

European leaders, including French President Emmanuel Macron, continued to emphasize the importance of dialogue and diplomacy, while UN Secretary-General Antonio Guterres called for all nations to respect international law and global cooperation.

The framework represents a diplomatic step forward, easing tensions over Greenland and Arctic affairs, and opening avenues for continued collaboration between the US, Denmark, NATO, and European partners.

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