Trump-Greenland latest: US President claims ‘framework of future deal’ agreed and backs down from tariff threat

Donald Trump met with Nato secretary general Mark Rutte and claimed that Western Arctic allies could forge a new deal over Greenland that would satisfy his desire for a “Golden Dome” missile-defense system and access to critical minerals while blocking Russia and China’s ambitions in the Arctic.

However, Rutte later said the issue of whether Greenland will remain with Denmark did not come up in his talks with Trump.

“That issue did not come up anymore in my conversations tonight with the president,” Rutte told Fox News.

“He (Trump) is very much focused on what do we need to do to make sure that that huge Arctic region – where change is taking place at the moment, where the Chinese and the Russians are more and more active – how we can protect it.”

Denmark said the issue should be handled through private diplomacy rather than on social media.

“What is crucial for us is that we get to end this with respect for the integrity and sovereignty of the kingdom (of Denmark) and the right of the Greenlandic people to self-determination,” Denmark’s Foreign Minister Lars Lokke Rasmussen told public broadcaster DR.

Rasmussen said he had spoken with Rutte but declined to provide details on what had been agreed.

Greenland’s government did not reply to a request for comment.

Donald Trump has reversed course and abandoned plans to impose tariffs on a group of U.S. allies that had objected to his push to acquire Greenland after what the U.S. president described as a “very productive” meeting with NATO Secretary-General Mark Rutte.

Writing on Truth Social, Trump said American and NATO representatives had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region” based on discussions held in the closed-door meeting at the World Economic Forum in Davos, Switzerland.

He said the “solution” would be “will be a great one for the United States of America, and all NATO Nations” if it is “consummated.”

White House correspondent Andrew Feinberg reports:

Liberal Democrat leader Sir Ed Davey described Donald Trump’s change of heart as “a real relief for households and businesses” but added: “This sorry saga has proved yet again that Donald Trump is a fundamentally unreliable partner, happy to bully and tantrum until he gets his way.

“We cannot entrust our economy or our safety and security to the whims of an unhinged US president and whether he wakes up in a good mood that day. This must be the wake-up call we need. Only by standing tall with our neighbours can we face down this unpredictability and protect our national interest.”

Donald Trump’s change in posture on tariffs sparked a stock market rally, with the S&P 500 index up 1.2 per cent.

That added to the market’s recovery after the sharpest equities selloff in three months.

“No he didn’t,” Leavitt wrote on X in response to a reporter accurately describing the speech, sharing a Google result featuring an image of Greenland. “His written remarks referred to Greenland as a ‘piece of ice’ because that’s what it is. You’re the only one mixing anything up here.”

The withdrawal of the threat of additional tariffs on European countries by President Trump is “a welcome development”, Ireland’s deputy premier has said.

Simon Harris, the country’s Finance Minister, said the “significant development” gave “credence and credibility” to the EU’s strategy.

He said the bloc had “maintained cool heads” and had not responded to “every bit of political noise” nor “every Truth Social post”.

In a statement, he said: “There’s much detail to emerge, and there’s still obviously much volatility, but today we have heard the President of the United States rule out force in relation to Greenland.

“We’ve also now seen in the last number of minutes him withdraw as a threat of additional tariffs.

“But it is important we continue to work collectively as a European Union, and collectively to stand up for the sovereignty of Denmark and Greenland – Greenland being a part of the Kingdom of Denmark.

“And also collectively work to seek the full implementation of the trade agreements that we already agreed with the US administration – an agreement that is key to protecting economic activity on both sides of the Atlantic.”

Sweden’s deputy prime minister has said that “today’s progress might be tomorrow’s headache” in reference to Donald Trump’s potential Greenland deal.

Ebba Busch told BBC Newsnight: “We don’t know the details of this deal. Today’s progress might be tomorrow’s headache.”

She added: “And we will have a long way to rebuild trust between the EU and the US.”

Spain is urging the EU to move towards creating a joint army for the bloc as a deterrence measure, Spain’s Foreign Minister Jose Manuel Albares said in comments to Reuters on Wednesday ahead of a day of meetings in Davos.

The region should focus first on bringing together its tangible assets to properly integrate its defence industry, and then mobilising a coalition of the willing, the foreign minister said.

The concern over whether European citizens would be willing to assemble militarily is a legitimate debate, but the chance of assembling a critical mass was higher as a bloc than on a national level, Albares said, adding: ”A joint effort would be more efficient than 27 separate national armies.”