After Davos talks with NATO chief, Trump drops February tariffs tied to Greenland dispute
The reversal followed a bilateral meeting with Mark Rutte on the sidelines of the World Economic Forum
- Jan 22, 2026,
- Updated Jan 22, 2026 7:33 AM IST
Hours after dialling down talk of military action, Donald Trump stepped back from his threat to impose sweeping tariffs on European countries over Greenland, signalling a tactical shift after direct talks with NATO leadership at Davos.
The reversal followed a bilateral meeting with Mark Rutte on the sidelines of the World Economic Forum. In a post on his Truth Social platform, Trump said tariffs scheduled to take effect on February 1 would no longer go ahead after discussions with the NATO chief.
“Based upon a very productive meeting that I have had with the Secretary General of Nato, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote.
The US President said the proposed framework would benefit both Washington and its NATO allies, adding that this was why he decided to drop the tariff threat. He said talks were continuing on what he described as the “Golden Dome” related to Greenland, and would be led by Vice President JD Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff, with officials reporting directly to him.
The move was welcomed in Copenhagen. Denmark’s Foreign Minister Lars Lokke Rasmussen said Trump’s decision marked a positive turn in the standoff, adding that “the day is ending on a better note than it began.”
NATO chief seeks to reassure Trump
Rutte, who took over as NATO secretary general last year, used the meeting to underscore alliance solidarity, pointing to NATO’s response after the 9/11 attacks when member states deployed troops to Afghanistan alongside US forces.
Trump said he appreciated the reassurance and described Rutte as trustworthy, but suggested tensions over Greenland had left him uncertain about allied resolve in moments of crisis.
Trump calls Greenland 'a piece of ice'
Earlier at Davos, Trump had already signalled a retreat from previous suggestions of using force to take control of Greenland. Reiterating his long-held view that the territory is critical to US national security, he cited its strategic Arctic location and intensifying global competition in the region.
Calling Greenland “a piece of ice,” Trump played down the scale of his demand.
“But now what I'm asking for is a piece of ice-cold and poorly located that can play a vital role in world peace and world protection. It's a very small ask compared to what we have given them for many decades,” he said.
Trump avoids naming a price
Despite talking up a future framework, Trump declined to say what the United States might be willing to pay for Greenland when questioned by reporters alongside Rutte.
“There’s a bigger price, and that’s the price of safety and security and national security and international security having to do with many of your countries,” he said. “That’s really the price. It’s a big price.”
Asked to clarify an earlier remark that the US would “remember” if Denmark refused to sell the territory, Trump offered no explanation.
“You’ll have to figure that out for yourself,” he said.
EU Parliament freezes trade deal
The de-escalation came just hours after the European Parliament moved to halt progress on a transatlantic trade agreement.
Lawmakers on the parliament’s trade committee voted to freeze ratification indefinitely, citing growing concern over Trump’s repeated threats linked to Greenland, according to Bloomberg. The chair of the international trade committee said there was “no alternative” but to suspend approval of the EU–US trade deal.
Hours after dialling down talk of military action, Donald Trump stepped back from his threat to impose sweeping tariffs on European countries over Greenland, signalling a tactical shift after direct talks with NATO leadership at Davos.
The reversal followed a bilateral meeting with Mark Rutte on the sidelines of the World Economic Forum. In a post on his Truth Social platform, Trump said tariffs scheduled to take effect on February 1 would no longer go ahead after discussions with the NATO chief.
“Based upon a very productive meeting that I have had with the Secretary General of Nato, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote.
The US President said the proposed framework would benefit both Washington and its NATO allies, adding that this was why he decided to drop the tariff threat. He said talks were continuing on what he described as the “Golden Dome” related to Greenland, and would be led by Vice President JD Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff, with officials reporting directly to him.
The move was welcomed in Copenhagen. Denmark’s Foreign Minister Lars Lokke Rasmussen said Trump’s decision marked a positive turn in the standoff, adding that “the day is ending on a better note than it began.”
NATO chief seeks to reassure Trump
Rutte, who took over as NATO secretary general last year, used the meeting to underscore alliance solidarity, pointing to NATO’s response after the 9/11 attacks when member states deployed troops to Afghanistan alongside US forces.
Trump said he appreciated the reassurance and described Rutte as trustworthy, but suggested tensions over Greenland had left him uncertain about allied resolve in moments of crisis.
Trump calls Greenland 'a piece of ice'
Earlier at Davos, Trump had already signalled a retreat from previous suggestions of using force to take control of Greenland. Reiterating his long-held view that the territory is critical to US national security, he cited its strategic Arctic location and intensifying global competition in the region.
Calling Greenland “a piece of ice,” Trump played down the scale of his demand.
“But now what I'm asking for is a piece of ice-cold and poorly located that can play a vital role in world peace and world protection. It's a very small ask compared to what we have given them for many decades,” he said.
Trump avoids naming a price
Despite talking up a future framework, Trump declined to say what the United States might be willing to pay for Greenland when questioned by reporters alongside Rutte.
“There’s a bigger price, and that’s the price of safety and security and national security and international security having to do with many of your countries,” he said. “That’s really the price. It’s a big price.”
Asked to clarify an earlier remark that the US would “remember” if Denmark refused to sell the territory, Trump offered no explanation.
“You’ll have to figure that out for yourself,” he said.
EU Parliament freezes trade deal
The de-escalation came just hours after the European Parliament moved to halt progress on a transatlantic trade agreement.
Lawmakers on the parliament’s trade committee voted to freeze ratification indefinitely, citing growing concern over Trump’s repeated threats linked to Greenland, according to Bloomberg. The chair of the international trade committee said there was “no alternative” but to suspend approval of the EU–US trade deal.