Trump made the announcement after meeting NATO Secretary General Mark Rutte on the sidelines of the World Economic Forum in Davos. He said the two sides had finalised a framework for a future agreement covering Greenland and Arctic security, which he described as beneficial to both the United States and NATO allies.
“Based on this understanding, I will not impose the tariffs,” Trump wrote on his social media platform, Truth Social. He added that details of the framework would be released soon.
The tariff threat, announced on January 17, targeted Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. Trump had warned that the levy could rise to 25% from June 1 if an agreement on Greenland was not reached. The move had raised concerns in Europe over potential trade disruptions and escalating transatlantic tensions.
According to officials familiar with the discussions, the Greenland framework outlines joint responsibility between the US and NATO for the security of Greenland and the broader Arctic region. Trump told reporters that the agreement would strengthen collective defence and ensure stability in a strategically sensitive area.
Media reports indicate that the framework may allow the US to establish limited military facilities in specific parts of Greenland for land, sea and air surveillance. NATO is also expected to cooperate with the US on the proposed ‘Golden Dome’ missile defence system, a project aimed at countering long-range threats from countries such as China and Russia.
The framework reportedly includes cooperation on Greenland’s mineral resources and measures to block Russian and Chinese economic or military influence in the Arctic. Greenland’s strategic location and rare-earth potential have made it a focal point of growing global competition.
Trump said discussions are continuing on the Golden Dome project and that senior officials, including Vice President JD Vance, Secretary of State Marco Rubio and Special Envoy Steve Witkoff, will hold further talks and report directly to him.
The tariff withdrawal signals a temporary easing of pressure on European allies, though analysts say it also underscores the Trump administration’s willingness to use trade measures as leverage in geopolitical negotiations. European governments have not yet issued formal responses to the announcement.
With Arctic security gaining prominence amid climate change and intensifying great-power rivalry, the Greenland framework is expected to shape NATO-US cooperation in the region in the coming years.
