Trump Drops Greenland Tariffs After Framework Deal at Davos

President Donald Trump announced at the World Economic Forum in Davos, Switzerland, on January 21, 2026, that the US has reached a framework for a future deal on Greenland with NATO allies. He said this agreement led him to cancel planned tariffs on European partners and made clear the US would not use force to take the island, while pushing for a long-term arrangement that gives America control over its security and resources.

Background

Talks about Greenland have heated up in recent months as the US eyes its spot in the Arctic for military bases, rare minerals, and strategic position against rivals like China and Russia. Trump has long wanted the US to buy or control the vast island, which belongs to Denmark but has its own local government. US presidents going back two centuries have tried to purchase it, seeing it as key to defending North America and Europe.

During World War II, the US set up bases there to protect it from Nazi Germany. After the war, America gave control back to Denmark. Trump brought it up again in his Davos speech, calling Greenland a 'big piece of ice' that only the US can defend properly. He pointed out that NATO allies have a duty to secure their own land, but said no one else can handle Greenland's size and location.

European leaders have watched these moves with worry. Some feared Trump might push too hard, even talking about tariffs on EU countries if they did not play ball. Canadian Prime Minister Mark Carney spoke at Davos just before Trump, warning that the world is shifting to an era where big powers do what they want and weaker ones suffer.

Trump met with European leaders on Wednesday afternoon to hash out Greenland issues. He told them the US alone can protect and develop the island, making it safe for everyone. He gave them a choice: agree to talks, or face consequences down the line.

Key Details

In a question-and-answer session after his speech, Trump laid out the framework deal. He called it 'pretty far along' and said it gets 'everything we wanted,' especially on national security.

"It's a long-term deal. It's the ultimate long-term deal… infinite." – President Donald Trump

Trump praised NATO Secretary General Mark Rutte as a great leader who represented the allies in the talks. He noted the US is a key NATO member and has strengthened the alliance. The deal does not yet include full US ownership, but Trump said it positions everyone well for security, minerals, and more. Details are still being worked out, with a full announcement coming soon.

Tariff Reversal

Trump had threatened tariffs over the weekend on US allies in Europe unless they backed his Greenland push. On Tuesday, he backed off, linking the decision directly to the NATO framework. This eased some fears in Europe, where leaders saw the tariff talk as a low point. One European official called Trump's earlier violence hints 'outrageous,' but noted relief at the pullback.

Trump reiterated he has 'tremendous respect' for Greenlanders and Danes. He ruled out military force, but added that if the US did move, its military would be 'unstoppable.' The framework focuses on Arctic security, with Greenland at the center due to its role in missile paths and resource potential.

What This Means

The framework shifts the Greenland debate from threats to talks. It opens doors for the US to gain a stronger foothold in the Arctic without immediate conflict. Europe gets a breather from tariffs, but leaders remain cautious about Trump's long-term aims. Full ownership is not locked in, but the 'infinite' deal suggests commitments that could last generations.

For NATO, this tests unity. Trump has pushed allies to spend more on defense, and Greenland fits that push. Denmark and Greenland's government must now weigh in on details. Local leaders have resisted past US offers, valuing their autonomy.

Security experts see Greenland's minerals—like rare earths needed for tech and weapons—as a big draw. Climate change is melting Arctic ice, opening new shipping routes and resource grabs. Rivals like China have invested there, which alarms the US.

Markets reacted positively to the tariff drop, with European stocks rebounding. But broader worries linger about global stability. Carney's words echo fears that old rules are fading, and Trump's approach signals a return to power plays over diplomacy.

The deal's progress could reshape Arctic control. If it leads to US bases or leases, it bolsters NATO's northern flank. Failure might bring tariffs back or worse tensions. Teams from the US, NATO, Denmark, and Greenland are now negotiating the fine print.

Trump framed it as a win for all: America gets security, Europe gets protection, and Greenland gets development. Whether that holds depends on the final terms. For now, Davos marked a pivot from brinkmanship to bargaining.