On Wednesday, President Donald Trump stated that he had reached what he referred to as a “framework of a future deal” with NATO regarding Greenland. This eased a situation with European allies and led him to back away from plans to impose new tariffs that had been unsettling global markets for several days.
The announcement, first made on a platform and later expanded upon in brief remarks to reporters, came after a meeting with the NATO secretary general on the sidelines of the World Economic Forum in Davos, Switzerland. Trump said that this understanding would prevent the tariffs that were scheduled to take effect on February 1 on goods from eight European countries that had resisted his demands regarding Greenland.
“We have established the framework of a future deal in relation to Greenland and, in fact, the entire Arctic Region,” Trump wrote, further stating that “based on this understanding, I will not be imposing the Tariffs that were set to go into effect.”
The American President provided few details about what the framework includes. When asked whether the agreement involved the U.S. obtaining ownership of Greenland, an outcome he has repeatedly described as crucial for national security, Trump paused before responding, “Uhh… it’s a long – term deal.”
He characterized the arrangement as a “work in progress,” saying that “the deal will be made public soon” and that it “will get us everything we wanted, including real national security.”
Denmark, which governs the semi – autonomous island, had previously ruled out negotiations over ceding Greenland to the United States. Trump did not claim that Denmark had changed its stance.
Despite the lack of specific details, financial markets reacted quickly. U.S. stocks rose after the announcement, continuing the gains that followed days of volatility triggered by Trump’s tariff threats.
The Greenland dispute has been a significant issue in Davos this week. It has dominated conversations among diplomats and executives since Trump threatened countries such as Denmark and the United Kingdom with a 10% tariff in February, increasing to 25% by June, unless they agreed to U.S. control of the island. These threats prompted European leaders to prepare countermeasures and pushed markets down earlier in the week.
In a speech earlier on Wednesday in Davos, Trump made a case for the U.S. to acquire Greenland, while noting that he would not attempt to seize it. Instead, he called for “immediate negotiations” with Denmark, even as Danish officials repeated that they would not “enter into any negotiations.”
Throughout the day, administration officials had indicated that a retreat was possible. Treasury Secretary Scott Bessent urged allies to “relax” and “take a deep breath,” while Commerce Secretary Howard Lutnick told a Davos panel that the confrontation would “end in a reasonable way.”
Trump’s post suggested that Rutte, the NATO Secretary General who once played a central role in defusing the crisis. Rutte did not provide more details about the deal but told reporters they had a “very good meeting” and confirmed that they had reached an agreement.
“His Truth Social post is right on the mark, and I completely agree with it,” Rutte said.
Trump said that Vice President J.D. Vance, Secretary of State Marco Rubio, special envoy Steve Witkoff, and other officials would lead further discussions on Greenland and related Arctic issues, including the “Golden Dome” missile defense system that Trump has argued would benefit from U.S. control of the island.
“This solution, if finalized, will be excellent for the United States of America and all NATO Nations,” Trump wrote.
