US President Donald Trump appeared to pull back from weeks of hardline rhetoric on Greenland on Wednesday, softening his threats of tariffs against European nations and publicly ruling out the use of military force to secure the Arctic territory.
Speaking at the World Economic Forum in Davos, Switzerland, Trump said a framework for a deal was taking shape — one that he claimed would protect American security interests while easing tensions with NATO allies rattled by his earlier remarks.
“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 when it comes to security and to minerals.”
The shift marked a notable change in tone. For weeks, Trump had warned he would impose escalating tariffs on exports from eight European countries if they failed to cooperate with Washington over Greenland, a self-governing territory of Denmark with about 57,000 residents. Those threats had unnerved markets and raised fears of a new transatlantic trade fight.
NATO meeting cools tensions
Trump’s softer approach came after a closed-door meeting with NATO Secretary General Mark Rutte at the Alpine resort. Following the talks, Rutte played down speculation about Greenland’s ownership, saying the issue itself no longer dominated the discussion.
“That issue did not come up anymore in my conversations tonight with the president,” Rutte said in an interview with Fox News. “He is very much focused on what we need to do to make sure that the huge Arctic region — where the Chinese and the Russians are more and more active — is properly protected.”
A NATO spokesperson later confirmed that discussions between Denmark, Greenland and the United States would continue, with the shared goal of preventing Russia and China from gaining any economic or military foothold in Greenland. No timeline or location for the talks was announced.
Trump said he had assigned Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff to lead the next phase of negotiations.
Force and tariffs taken off the table — for now
Earlier in the day, Trump directly addressed growing concerns that he might use military pressure to advance his Greenland ambitions.
“People thought I would use force, but I don’t have to use force,” he said during his Davos speech. “I don’t want to use force. I won’t use force.”
He also indicated that the tariffs he had threatened to impose starting February 1 would not move forward, saying a broader understanding had been reached with NATO partners on Arctic security.
Financial markets reacted quickly. Wall Street rallied after Trump’s remarks, with the S&P 500 posting its biggest one-day gain in two months. Just a day earlier, his aggressive language on Greenland had helped trigger the sharpest stock market sell-off in three months.
Denmark urges quiet diplomacy
Denmark welcomed the de-escalation but stressed that any outcome must respect its sovereignty and the wishes of Greenland’s people.
“What is crucial for us is that we end this with respect for the integrity and sovereignty of the kingdom and the right of the Greenlandic people to self-determination,” Danish Foreign Minister Lars Lokke Rasmussen told public broadcaster DR. He added that sensitive issues should be handled through private diplomacy rather than public statements and social media.
Greenland’s government did not immediately comment.
Greenland dominates Davos spotlight
Despite the apparent breakthrough, Trump’s comments on Greenland overshadowed much of his Davos visit. In a wide-ranging and often confrontational speech, he criticized European countries over energy policy, immigration and trade, while portraying himself as the only leader capable of securing the Arctic.
Calling Denmark “ungrateful,” Trump described his request as a “small ask” for what he repeatedly referred to as a “piece of ice.” At several points, he argued that no country other than the United States could properly defend Greenland — though he also drew attention for mistakenly referring to the territory as Iceland multiple times.
“You can say yes, and we will be very appreciative, or you can say no, and we will remember,” Trump warned.
Russian President Vladimir Putin, quoted by Russian news agencies, dismissed the dispute, saying developments around Greenland were “of absolutely no consequence” to Moscow. Still, analysts note that Trump’s push has strained NATO unity at a time when the alliance is already under pressure from multiple global crises.
Bigger ambitions behind the push
According to sources familiar with the matter, Trump’s interest in Greenland is driven by more than short-term security concerns. Advisers say he sees control of the territory as a historic opportunity to expand US influence in the Arctic, secure access to critical minerals, and bolster missile defense systems — potentially the largest territorial expansion since Alaska and Hawaii became states in 1959.
For now, Trump’s decision to dial back tariff threats and rule out force has eased immediate tensions. But with negotiations still undefined and rhetoric still sharp, European leaders remain cautious about what comes next.
Trump was scheduled to continue his Davos meetings on Thursday, including talks with Ukrainian President Volodymyr Zelenskyy, as he seeks to position himself at the center of global security debates — even as his Greenland gambit continues to test alliances on both sides of the Atlantic.
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