President Donald Trump reversed course on Wednesday, abandoning the tariffs he had threatened against eight European nations in his push to secure U.S. control over Greenland. The announcement came hours after Trump had emphasized that he wanted the island “including right, title and ownership.”
On his social media platform, Trump said he had reached an agreement with the head of NATO on a “framework of a future deal” for Arctic security, easing tensions that had raised alarms across the international stage.
Trump added that “additional discussions” on Greenland were underway, focusing on the Golden Dome missile defense program, a $175 billion multilayered system that would for the first time place U.S. weapons in space. He provided few specifics, noting that details were still being worked out.
READ ALSO: Trump threatens 10% tariffs on eight European nations over Greenland
One proposal reportedly under consideration involved Denmark and NATO collaborating with the U.S. to expand American military bases on Greenland, according to a European official familiar with the discussions who spoke anonymously. It was unclear whether this idea was included in the framework Trump announced.
This is not the first time Trump has threatened tariffs and then backed down. In April, after signaling massive import levies on multiple countries, he retreated following a sharp market reaction. This latest reversal followed his high-profile appearance at the World Economic Forum in the Swiss Alps, where he had zeroed in on Greenland and warned that NATO could be disrupted.
During his Davos speech, Trump described Greenland as “cold and poorly located” and cited America’s role in defending Europe during World War II, stating, “It’s a very small ask compared to what we have given them for many, many decades.”
“We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But I won’t do that, OK?” Trump said.
While he repeatedly asserted that the U.S. would defend NATO, Trump questioned whether the alliance would back Washington if necessary. NATO Secretary General Mark Rutte reassured him, stating at a post-speech event, “You can be assured, absolutely.” Shortly afterward, Trump posted that the tariffs would be canceled.
Danish Foreign Minister Lars Løkke Rasmussen welcomed the decision, saying it avoided taking “Greenland by force” and paused “the trade war with Europe.” He added, “Now, let’s sit down and find out how we can address the American security concerns in the Arctic while respecting the red lines of the Kingdom of Denmark.”
Trump has long argued that Greenland is vital for U.S. national security and as a counter to Russia and China in the Arctic, despite an existing U.S. military base on the island. He had threatened steep import taxes on Denmark and seven other allies unless they agreed to transfer the semi-autonomous territory, with tariffs set to begin at 10% next month and rise to 25% in June.
READ ALSO: Trump floats tariff penalties to force support for U.S. control of Greenland
The president’s Davos threats raised concerns that NATO could fracture. European members stood firm that Greenland is not for sale and denounced Trump’s tariff threats. A Danish official, speaking anonymously, emphasized that “red lines”—Denmark’s sovereignty—must be upheld, even as Copenhagen expressed willingness to discuss U.S. security concerns.
Greenland’s government, meanwhile, urged citizens to prepare for possible crises. It published a handbook in English and Greenlandic advising residents to stock enough food, water, fuel, and supplies to last five days.
“We just went to the grocery store and bought the supplies,” said Tony Jakobsen in Nuuk, showing bags filled with candles, snacks, and toilet paper. “I think Trump’s rhetoric towards Greenland was just threats… but it’s better to be ready than not ready.”
Before retreating, Trump had issued a warning: “We want a piece of ice for world protection, and they won’t give it. You can say yes, and we will be very appreciative. Or you can say no, and we will remember.” He also called for “immediate negotiations” to acquire Greenland but declined to specify a price, stating only, “There’s a bigger price, and that’s the price of safety and security and national security and international security.”
His Davos visit faced a minor delay when Air Force One experienced an electrical problem, forcing a return to Washington to switch aircraft. As he traveled to the speech venue, skiers and other onlookers lined the road, some making obscene gestures.
Markets that had slumped on news of the threatened tariffs rebounded Wednesday, relieving U.S. officials worried that Trump’s aggressive stance toward Greenland, Denmark, and NATO could complicate broader foreign policy objectives.
Trump had originally planned to focus his speech on lowering U.S. housing prices but instead centered on Greenland, even mistakenly calling it Iceland four times. “This enormous unsecured island is actually part of North America,” he said. “That’s our territory.”
When finally addressing housing, Trump argued that efforts to reduce home prices could harm property values and make homeowners feel poorer, rather than more secure.
READ ALSO: ‘Anything less is unacceptable’ – Trump pushes for full U.S. control of Greenland
In Nuuk, residents were left bracing for the worst while Trump’s rhetoric loomed. Johnny Hedemann described the approach as “insulting,” saying Trump treated Greenland as “just an ice cube.” Hedemann was heading out to buy a camping stove and instant mashed potatoes. “Living in this nature, you have to be prepared for almost anything. And now there’s another threat — and that’s Trump,” he said in a report by the AP.
