Trump Calls Off Europe Tariffs After Reaching ‘Framework’ on Greenland Deal

Donald Trump abruptly reversed course on planned tariffs against several European nations after announcing what he described as a long-term “framework” agreement with NATO concerning Greenland and broader Arctic security. The surprise move came hours after Trump delivered a combative, wide-ranging speech at the World Economic Forum (WEF) in Davos, Switzerland.

Donald Trump said the understanding would halt tariffs that were scheduled to take effect on February 1, framing the deal as a strategic win for both the United States and its NATO allies. “It’s a deal that’s forever,” Trump told reporters on the sidelines of the forum. “It’s what’s called an infinite deal.”

Greenland at the Center of Arctic Security Talks

According to Trump, the framework was developed in discussions with NATO Secretary-General Mark Rutte and would cover not only Greenland but “the entire Arctic Region.” While few concrete details were released, Trump suggested the agreement would reshape how NATO approaches Arctic defense and security.

Greenland, a semi-autonomous territory within the Kingdom of Denmark, has become a focal point of geopolitical tension amid rising global competition in the Arctic. The region includes eight nations with Arctic territory, including Canada, the U.S., Denmark, Russia, and several Nordic countries.

Trump reiterated that the deal was rooted in national and international security concerns rather than economic interests, insisting that rare earth minerals were not the primary motivation behind Washington’s interest in Greenland.

Tensions Boil Over at Davos After Howard Lutnick’s Speech, Chrisitine Lagarde Exits & Al Gore Boos

European Reaction: Cautious Relief, Lingering Doubts

European leaders welcomed the tariff reversal but remained wary of the broader implications. Swedish Foreign Minister Maria Malmer Stenergard praised Trump for backing away from what she described as economic pressure tactics, saying coordinated resistance by allies had an impact.

However, analysts warned that the damage to transatlantic trust may not be easily undone. Political analyst Jeffrey Bloodworth described the moment as “a new chapter in NATO,” questioning whether the alliance could fully recover from months of escalating rhetoric.

The European Union had already begun freezing work on a broader U.S.-EU trade agreement in response to Trump’s earlier tariff threats and remarks about acquiring Greenland, underscoring how fragile negotiations remain.

Tensions Spill Over to Canada and NATO Allies

Trump’s Davos appearance also featured sharp criticism of Canadian Prime Minister Mark Carney, whose speech earlier in the week urged middle powers to band together against economic coercion. Trump accused Canada of benefiting disproportionately from U.S. support and warned Carney to “remember that” in future statements.

Despite insisting he would not use military force to acquire Greenland, Trump declined to rule out consequences if Denmark refuses to negotiate. “You’ll have to figure that out for yourself,” he said when pressed for clarity.

Markets Stabilize, Uncertainty Remains

Global markets appeared to stabilize following Trump’s tariff reversal, though investors continued to seek safe havens. Gold prices surged to record highs, reflecting lingering uncertainty over global trade and security.

While Trump framed the Greenland framework as a diplomatic breakthrough, many allies remain cautious, awaiting details that could determine whether the deal represents genuine cooperation—or merely a pause in escalating tensions.