Trump backs down from Greenland tariff threats after NATO talks

US President Donald Trump appeared to soften his stance on Greenland on Wednesday, stepping back from threats to impose tariffs on European nations and ruling out the use of military force to acquire the Danish territory.

Speaking at the World Economic Forum in Davos, Switzerland, Trump said a deal was taking shape that would satisfy American security interests in the Arctic while preventing Russian and Chinese expansion in the region.

“It’s a deal that everybody’s very happy with,” Trump told reporters. “It’s a long-term deal. It puts everybody in a really good position, especially as it pertains to security and to minerals.”

The shift in tone came after Trump met with NATO Secretary General Mark Rutte at the Alpine resort. For weeks, Trump had threatened to impose escalating tariffs on eight European countries if they didn’t cooperate over Greenland, a self-governing territory of Denmark with 57,000 residents.

Rutte later said the question of Greenland’s sovereignty didn’t come up during his discussions with Trump.

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

A NATO spokesperson confirmed that negotiations between Denmark, Greenland and the United States would move forward, aimed at ensuring Russia and China never gain a foothold in Greenland. No date or venue was provided for such talks.

Trump said he had tasked Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff to handle further discussions.

Read Also: Trump rules out forceful acquisition of Greenland, seeks negotiations

Earlier in his Davos speech, Trump ruled out using force to acquire Greenland.

“People thought I would use force, but I don’t have to use force,” Trump said. “I don’t want to use force. I won’t use force.”

The change in approach sparked buying on Wall Street. The S&P 500 index posted its biggest one-day percentage gain in two months, adding 1.16%. Trump’s more aggressive comments on Greenland the previous day had triggered the sharpest stock market sell-off in three months.

Denmark’s Foreign Minister Lars Lokke Rasmussen said the matter 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 and the right of the Greenlandic people to self-determination,” Rasmussen told Danish public broadcaster DR.

Greenland’s government did not respond to requests for comment.

Trump’s comments on Greenland overshadowed much of his visit to Davos, where he also criticised European nations on issues ranging from energy policy to immigration.

Calling Denmark “ungrateful”, Trump described the territorial dispute as a “small ask” over a “piece of ice”. He argued that no nation except the United States could properly secure Greenland, though he mistakenly referred to the territory as Iceland four times during his speech.

“You can say yes, and we will be very appreciative, or you can say no, and we will remember,” Trump said.

Russian President Vladimir Putin, quoted by Russian news agencies, said: “What happens in Greenland is of absolutely no consequence to us.”

Trump’s push for Greenland is believed to be driven by a desire to expand US territory in the biggest way since Alaska and Hawaii became states in 1959. He has cited the need for a missile defence system and access to critical minerals as key reasons for American interest in the Arctic territory.

On Thursday, Trump was scheduled to meet with Ukrainian President Volodymyr Zelenskyy as part of his Davos visit.

Oluwatosin Ogunjuyigbe is a writer and journalist who covers business, finance, technology, and the changing forces shaping Nigeria’s economy. He focuses on turning complex ideas into clear, compelling stories.

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