Donald Trump drops threat of tariffs over Greenland and says a deal is in the works

DONALD TRUMP HAS said he will not impose planned tariffs on a number of European countries after claiming a “framework” had been agreed for a future deal relating to Greenland and the wider Arctic region.

Trump offered no details on the tentative framework, but the announcement followed weeks of increasingly rampant rhetoric from Trump about seizing Greenland by force and threatening sanctions if countries stood in his way.

In a statement posted on Truth Social this evening, Trump said the decision to quash his proposed tariffs followed a “very productive meeting” with NATO Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland.

Trump added that the proposed tariffs, which were due to take effect on 1 February, would be waived.

“Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect,” Trump said, without providing details of the alleged framework or how it would affect Greenland, which is an autonomous territory controlled by Denmark.

“Thank you for your attention to this matter!”

Speaking to reporters this evening, Trump said it looked like the US had a concept of a deal in relation to Greenland and that its outlines are “everything we wanted”.

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He added that it was a deal that “everyone was happy with”.

“Right now, we’ve made a little bit in progress, but it’s pretty far along. It gives us everything we needed to get,” Trump said.

Asked directly if the deal gives the US ownership of Greenland, Trump replied: “It’s a long term deal.”

“It’s the ultimate long term deal, and I think it puts everybody in a really good position, especially as it pertains to security and minerals and everything else,” he added.

Taoiseach Micheál Martin welcomed the news while speaking to RTÉ in Davos this evening.

“I warmly welcome the statement and I think it reflects what I’ve been consistently saying, that the only way to resolve issues of this kind is through dialogue, through discussion and through engagement. That is the key,” he said.

“It’s particularly welcome that a framework has been developed that will facilitate discussions between all involved.

“Collectively, we need to de-escalate this situation. We need to dial down and engage in those areas that matter: economy, society.”

EU response

The announcement came hours after the European Parliament formally suspended the ratification process for a major US-EU trade deal, in protest at Trump’s threat to impose 10% tariffs on EU exports unless the bloc agreed to his demands over Greenland.

Bernd Lange, chair of the European Parliament’s trade committee, had described the threat as “blackmail” and said there could be “no possibility for compromise” on the deal while it remained in place.

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European Commission President Ursula von der Leyen returned early from the World Economic Forum in Davos to Brussels earlier today to prepare for an emergency summit on potential EU responses, including retaliatory tariffs and the possible activation of the bloc’s anti-coercion instrument.

Trump said further discussions on Greenland and the Arctic would continue, led by Vice President JD Vance, Secretary of State Marco Rubio and other senior officials.

It remains unclear whether the European Parliament will now reverse its decision to pause the trade deal ratification process, or whether EU leaders will seek formal assurances before doing so.

Greenland takeover

Trump’s quest to take the strategic Arctic island of Greenland from NATO ally Denmark has deeply shaken the global order and markets in recent days.

On the face of it, Trump’s decision to drop his threat of tariffs seems like a complete u-turn - in a speech earlier today at the World Economic Forum at Davos, Trump took aim at European nations, stating that he believes Europe “is not heading in the right direction.”

The US President also, for the first time, ruled out using force, but demanded “immediate negotiations” to acquire the island from Denmark.

“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,” Trump said.

“I don’t have to use force. I don’t want to use force. I won’t use force. All the United States is asking for is a place called Greenland.”

With reporting from AFP

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