US President Donald Trump on Wednesday outlined a framework for a future agreement on Greenland and the wider Arctic region, while announcing a pause in tariff action against several European countries. Speaking hours after his address at the World Economic Forum in Davos, Trump said the US would not use military force to acquire Greenland and that planned tariffs scheduled for February would be put on hold.
Trump said the framework followed what he described as a “very productive” meeting with Nato scretary general Mark Rutte. If finalised, the arrangement would benefit both the US and Nato allies, he said. Based on this understanding, Trump said he would not go ahead with tariffs that were due to come into effect on February 1.
Earlier this month, Trump had threatened to impose tariffs on eight European countries, including Denmark, Norway and Sweden, accusing them of blocking US interests in Greenland or maintaining military deployments on the island. The plan involved a stepped tariff structure, starting with a 10 percent duty on all goods from the targeted countries on February 1, rising to 25 percent from June 1 if no agreement was reached.
In a social media post after his Davos speech, Trump said discussions were also continuing on the so-called Golden Dome, a proposed multi-layered missile defence system. Greenland’s strategic location in the Arctic is seen as central to the plan. Negotiations will be led by vice-president J D Vance, secretary of state Marco Rubio, special envoy Steve Witkoff and other senior US officials.
At Davos, Trump sought to ease concerns sparked by his earlier remarks about acquiring Greenland, including past suggestions that force could be used if necessary. “I don’t want to use force. I won’t use force,” he said, adding that the US needed Greenland for national security and access to critical minerals, including rare earths.
However, Trump also used his 70-minute speech to criticise Nato and Europe, saying the alliance treated the US unfairly and claiming Europe was “not even recognisable”. He praised the strength of the US economy under his leadership and argued that his tariff policies were drawing investment from countries such as China, Japan, Mexico and Canada.
On China, Trump said the US was far ahead in artificial intelligence and maintained a close personal relationship with President Xi Jinping. He warned about the risks of unchecked AI while insisting that the US remained the global leader in the technology.
Trump also briefly addressed trade ties with India, saying the US was working towards a good trade deal, a remark that could help ease market concerns amid recent global uncertainty.
Wednesday marked Trump’s first in-person appearance at Davos since 2020, turning the annual gathering into a major geopolitical event as investors and policymakers closely watched his remarks for signals on trade, security and global economic policy.
