Davos: President Donald Trump says the US is exploring a potential deal on Greenland after talks with NATO as he backed off threats to tariff European allies that had opposed his plans for America to acquire the island.
US President Donald Trump announced that he had reached a 'framework of a future deal' on Greenland with NATO Secretary-General Mark Rutte.
He also withdrew his threat to impose 10 percent trade tariffs on eight European nations objecting to the sale of Greenland to the US – set to rise to 25 percent later in the year if no deal was reached.
In a bid to defuse rising transatlantic tensions, Rutte met with Trump in Davos, Switzerland, during the annual summit of the World Economic Forum. During his speech at Davos on Wednesday, Trump reiterated that he wants to acquire Greenland, but ruled out taking the Arctic island by force.
On Thursday, Rutte told reporters that NATO countries would ramp up security in the Arctic as part of the agreement.
Meanwhile, in a Truth Social post on Wednesday, Trump said that following a “very productive” meeting with Rutte, he had formed the “framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region”.
Trump added that, under this deal, he would not impose tariffs on the eight European countries that have opposed his attempt to acquire Greenland.
He added that additional discussions are being held about “The Golden Dome as it pertains to Greenland”. The Golden Dome is designed to counter aerial threats. Trump announced the proposed multilayered missile defence programme in May 2025. Under it, the US will deploy missile interceptors in space to shield against ballistic and hypersonic threats. The project is set to be completed by the end of Trump’s term in 2029.
On January 17, Trump announced that from February 1, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would be charged a 10 percent tariff on their exports to the US.
But following his meeting with Rutte on Wednesday, Trump withdrew his threat of tariffs and said a “framework for a future deal” had been reached. Specific details of the “framework” are unknown. But Trump has described it as a pathway towards a “long-term deal”.
He has specified some elements of what he expects from that deal. “It puts everybody in a really good position, especially as it pertains to security and to minerals. It’s a deal that’s forever.” Trump told reporters.
Trump, and US presidents before him, have coveted Greenland for its strategic position.
The sparsely populated Arctic island of Greenland is geographically in North America but politically part of Denmark, making it part of Europe.
Greenland’s geographical position between the Arctic and North Atlantic oceans provides the shortest air and sea routes between North America and Europe, making it crucial for US military operations and early-warning systems, especially around the Greenland-Iceland-United Kingdom gap, according to the Trump administration.
Greenland also has plentiful deposits of minerals, including large amounts of untapped rare earth metals, which are required for the production of technology ranging from smartphones to fighter jets. (Agencies)
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