Trump drops tariff threats over Greenland after Nato agrees to Arctic deal

Decision follows Trump's talks with Nato chief Mark Rutte on a future Greenland and Arctic security framework, prompting the US President to drop planned tariffs on European allies

US President Donald Trump on Thursday (local time) said he was cancelling planned tariff threats on eight European nations after reaching what he described as a “framework of a future deal” on Arctic security and Greenland with Nato Secretary General Mark Rutte.

 

The announcement followed a “very productive” meeting with Rutte and comes amid Trump’s renewed push for greater US control over Greenland, an autonomous territory of Denmark.

 

Trump made the announcement on his social media platform Truth Social shortly after addressing the World Economic Forum (WEF) in Davos, where he said the US would not use military force to take over Greenland.

 

 

Why did Trump drop the proposed tariffs?

 

In his Truth Social post, Trump said the tariff decision was linked to progress on a broader security framework for Greenland and the Arctic region.

 

“Based upon a very productive meeting that I have had with the Secretary General of Nato, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote.

 

He added that the proposed arrangement, if finalised, would benefit both the US and Nato allies. “Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st,” he said. 

 

What does the Arctic and Greenland framework involve?

 

Trump said further discussions were under way on what he referred to as “The Golden Dome” as it pertains to Greenland, without providing additional details.

 

He said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and other officials would lead the negotiations and report directly to him.

 

What did Trump say at the World Economic Forum?

 

Earlier, speaking at the 56th Annual WEF meeting in Davos, Trump called for “immediate negotiations” with European allies on Greenland, insisting his stance did not pose a threat to Nato.

 

He argued that Greenland could be better protected and developed under US control, citing its strategic importance. “It’s the United States alone that can protect this giant mass of land, this giant piece of ice, make it safe for Europe and good for us,” Trump said. Trump also said the US interest in Greenland was driven by strategic considerations rather than rare earth minerals.

 

How did Denmark respond to the tariff reversal?

 

Denmark’s Foreign Minister Lars Lokke Rasmussen welcomed Trump’s decision to abandon the tariff plan, calling it a positive development.

 

“The day is ending on a better note than it began,” Rasmussen said, adding that easing trade tensions marked an improvement in relations.

 

What were the proposed tariffs and Europe’s response?

 

Earlier this month, Trump had threatened steep US import tariffs on Denmark and seven other European allies unless they agreed to negotiations over Greenland. The tariffs were set to begin at 10 per cent next month and rise to 25 per cent by June.

 

European leaders pushed back strongly. British Prime Minister Keir Starmer said Britain would not compromise its principles over Greenland under tariff pressure. European Commission President Ursula von der Leyen warned that the EU would respond “unflinchingly, united, and proportionally” if tariffs were imposed.