Trump halts tariffs after dramatic breakthrough in Greenland deal

Donald Trump's Greenland deal involves 'small pockets of land for US bases', sources have revealed.

The president dramatically scrapped tariffs on eight European countries as he announced a breakthrough agreement with NATO Secretary General Mark Rutte on Wednesday evening.

Trump wrote on Truth Social that he and Rutte 'had formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region.

'This solution, if consummated, will be a great one for the United States of America, and all NATO Nations.'

The announcement followed a meeting where top NATO military officers discussed an arrangement where Denmark would cede 'small pockets of Greenlandic' territory to the US where it could build bases, senior officials told The New York Times.

The agreement was compared by the sources to UK military bases in Cyprus which are treated as sovereign British territories.

Trump did not immediately give details of the deal but said NATO would work with the US to build his Golden Dome missile defense system and share mineral rights.

'They're going to be involved in the Golden Dome, and they're going to be involved in mineral rights, and so are we,' Trump told CNBC.

When asked how long the agreement would last, the president said: 'Forever.' 

NATO said in a statement that 'negotiations between Denmark, Greenland and the United States will go forward aimed at ensuring that Russia and China never gain a foothold - economically or militarily - in Greenland.'

Trump said 'additional discussions' were ongoing regarding Greenland and that Vice President JD Vance, Secretary of State Marco Rubio and Special Envoy to the Middle East Steve Witkoff were 'responsible for the negotiations.' 

Trump told reporters in Davos on Wednesday that the deal will be 'put out pretty soon.' 

'It gets us everything we needed to get,' he insisted, adding: 'It's a deal that everybody's very happy with.'

In his speech at the World Economic Forum, Trump pledged that he would not seize Greenland by force, walking back his bellicose rhetoric over the weekend. 

'I don't have to use force, I don't want to use force. I won't use force,' he vowed. 'All the United States is asking for is a place called Greenland.' 

The stock market bounced back immediately after crashing on Tuesday over his tariff threats, although they are still in the red for the week. 

The Dow surged by 1.2 percent, the S&P 500 gained 1.16 percent and the Nasdaq advanced 1.18 percent.

Trump on Saturday threatened Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland with a 10 percent tariff starting on February 1 after they sent troops to Greenland. 

Since starting his second-term, the president has suggested the US should acquire Greenland to stop Russia and China from taking over strategic positioning in the Artic region.

The Danish territory provides strategic access to the Arctic, where China and Russia have, in recent years, flexed their geopolitical might as the melting polar ice provides greater access to shipping lanes and natural resources.

Greenland, which houses NATO military bases, is also rich in oil, gold, graphite, copper, iron, and other rare earth elements.

The Trump administration believes Greenland could provide infrastructure for the proposed Golden Dome missile defense system to protect North America from ballistic threats.

Greenland's rare earth minerals and fossil fuels would be essential for America to decouple its reliance on Chinese supply chains.