DAVOS (Switzerland), Jan 21: In a move reminiscent of several of his previous
tactical pivots on issues displaying flexibility in dealing with national and
international matters, President Donald Trump abruptly dropped his much-touted
plan to seize Greenland militarily and in the same breath walked back his threat
to impose significant tariffs on European allies who had opposed his mobve to
acquire the Danish territory on the pretext of security.
Trump's 180-degree somersault followed a "very productive" meeting with NATO
Secretary General Mark Rutte at the World Economic Forum in Davos on Wednesday.
Trump announced a "framework of a future deal" regarding Arctic security. Key
details of this walk-back include:
Tariff cancellation: Trump scrapped plans to impose 10% tariffs starting
February 1 on eight nations—Denmark, Norway, Sweden, France, Germany, the UK,
the Netherlands and Finland.
No military force: While reiterating interest in Greenland’s future,
Trump explicitly ruled out the use of military force to acquire the territory.
Arctic security framework: The reversal is based on an agreement to
bolster security cooperation in the Arctic region, which avoids immediate threats
to Danish sovereignty while addressing US strategic concerns about Russia and
China.
This shift has been described as a "de-escalation" of the Greenland crisis
that had previously threatened the stability of the NATO alliance.
In a move reminiscent of his previous tactical pivots on several issues displaying
flexibility in dealing with national and international matters,
The climbdown on Truth Social
After a week of escalating tensions over Greenland, Trump announced on Wednesday
that he would shelve planned tariffs on eight European allies following a "very
productive" meeting with NATO Secretary-General Mark Rutte.
The reversal was made official in a characteristically bold post on Truth Social.
Trump informed his followers that the 10% tariffs—which were set to hit Denmark,
Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland on February
1st—have been suspended.
"Based upon a very productive meeting... 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. "Based upon this understanding,
I will not be imposing the Tariffs."
Previously, Trump had threatened to hike those duties to 25% by June if a
deal for the "Complete and Total purchase" of the territory was not reached.
The sudden "framework" appears to have provided him with the necessary "win"
to step back from an economic brink that had already begun to rattle global
stock markets and prompted the European Parliament to freeze a separate US-EU
trade deal.
A "Piece of Ice" for the "Golden Dome"
Earlier in the day, Trump’s tone at the World Economic Forum was far more
combative. During a rambling special address, he lambasted European leaders
as "unreliable partners" and insisted that the US has a historical and security-based
right to Greenland. He described the territory as a "piece of ice" essential
for his proposed "Golden Dome"—a new sophisticated missile defence shield.
Despite the aggressive rhetoric, Trump used his Davos appearance to formally
rule out the use of military force to acquire the island, stating, "I don't
have to, and I don't want to." Instead, he framed the new "framework" as a way
to ensure Arctic security against Russian and Chinese influence, claiming the
deal would be "for ever" and "fantastic for the USA."
Strategic flexibility or familiar pattern?
Critics and allies alike noted that this follows a familiar pattern of "brinkmanship
followed by a thaw." Just as he did with the "Liberation Day" tariffs in 2025,
Trump used a maximum-pressure tactic to force a high-level meeting, only to
claim victory and de-escalate once the markets reacted poorly.
While Danish Foreign Minister Lars Løkke Rasmussen welcomed the "better note"
to the day, the underlying tension remains. NATO officials clarified that the
"framework" focuses on collective security and mineral rights rather than a
transfer of sovereignty—a distinction that suggests the "Complete and Total
purchase" Trump initially demanded remains a distant, if not impossible, goal.
Following his meeting with Rutte, Trump took to Truth Social to deliver the
news that markets had been desperately awaiting. He claimed that the two leaders
had established a "framework of a future deal" regarding Greenland and the broader
Arctic region.
The President added that the deal would be "great for the USA and all NATO
nations" and mentioned that discussions regarding the "Golden Dome"—his proposed
missile defense shield—would continue as part of the negotiations.
Earlier in the day, the atmosphere in Davos was far more tense. During his
special address to global leaders, Trump remained firm on his demand for "right,
title, and ownership" of Greenland. He referred to the territory dismissively
as a "piece of ice" and "cold and poorly located," but argued it was a strategic
necessity that the US "saved" during World War II.
While he ruled out using military force—calling it "unnecessary"—he used the
Davos stage to remind European allies of their "debt" to the US. "We want a
piece of ice for world protection, and they won’t give it," he told the audience.
"You can say yes and we will be very appreciative, or you can say no and we
will remember."
A tactical retreat?
While Trump framed the suspension of tariffs as a victory resulting from a
new "framework," diplomats in Davos remain skeptical. NATO officials noted that
the "deal" currently focuses on collective security and mineral rights rather
than the "complete and total purchase" Trump originally demanded.
The move to shelve the tariffs follows a familiar pattern seen in his first
term and throughout 2025: a period of intense threats ("blowing hot") followed
by a sudden de-escalation ("blowing cold") once he secures a high-level meeting
or a symbolic concession. For now, the "Arctic Trade War" is on ice, providing
a reprieve for the economies of Denmark, France, Germany, and the UK.