Trump cancels threat to impose tariffs on Greenland, says NATO agreed to ‘framework’ for future Arctic agreement

DAVOS, Switzerland – President Donald Trump announced Wednesday that he will cancel tariffs on U.S. allies in Europe over U.S. control of Greenland after he and the NATO leader agreed to a “framework for a future agreement” on Arctic security.

The surprising shift came hours after Trump insisted he wanted “Greenland, including the right, title and ownership”, but said he would not use force to do so while mocking European allies and vowing that NATO should not try to impede US expansion.

In an extraordinary speech at the World Economic Forum, the president said he was asking for a “cold and poorly located” region. He said the United States effectively saved Europe during World War II, and even declared for NATO: “It’s a very small ask compared to what we’ve given them over so many decades.”

“We probably won’t get anything unless you decide to use excessive force, since frankly we won’t be able to be stopped. But I won’t do that, okay?” Trump said, then later added: “I don’t have to” and “I don’t want to use force.”

Trump often tries to increase pressure on the other side when he believes it could lead to a favorable agreement, and he seemed happy to do so ahead of the Davos forum.

The consequences of his statements were enormous, potentially tearing apart an alliance that had held firm since the dawn of the Cold War and seemed among the most unshakable agreements in the world.

US President Donald Trump meets with NATO Secretary General Mark Rutte in Davos amid Greenland threats. Watch the video in the player above.

NATO was founded by the leading European countries, the United States and Canada to form a bloc to confront the Soviet Union. Its other members have been consistent in saying Greenland is not for sale and cannot be taken away from Denmark, meaning Trump’s comments could mark the beginning of a larger geopolitical confrontation.

The president has long said that the United States will control Greenland no matter the cost, arguing that Washington needs the largest island in the world to confront threats in the surrounding Arctic Ocean from Russia and China. This is despite the fact that America already has a large military base there.

A Danish government official told The Associated Press after Trump’s speech that Copenhagen was willing to discuss U.S. security concerns. But the official, who was not authorized to comment publicly and spoke on condition of anonymity, reiterated the government’s position that “red lines” – Denmark’s sovereignty – must be respected.

The Greenlandic government responded by telling its citizens to be prepared. It has published a booklet in English and Greenlandic on what to do in a crisis, urging residents to ensure they have enough food, water, fuel and supplies at home to survive for five days.

He watches: ‘Something’s going to happen’ Trump says as Greenland threats worry NATO allies

“We just went to the grocery store and bought supplies,” Tony Jacobsen said in Nuuk, the capital of Greenland, showing off the contents of the bags that included candles, snacks and toilet paper.

Jacobsen said he believed Trump’s rhetoric toward Greenland were “just threats… but it’s better to be prepared than not prepared.”

Meanwhile, Trump urged Denmark and the rest of NATO to stand aside, adding an ominous warning.

“We want a piece of ice to protect the world, and they won’t give it,” Trump said. “You can say yes, and we will be very grateful. Or you can say no, and we will remember.”

He also called for “immediate negotiations” for US acquisition of Greenland. In subsequent comments to journalists, he refused to specify the price that might be paid, saying only: “There is a greater price, which is the price of safety, security, national security, and international security.”

Trump suggests that Europe is faltering while the United States is thriving

Danish Foreign Minister Lars Lokke Rasmussen said he was encouraged by Trump’s comment about not using US military force, but described other parts of the speech as “a way of thinking about territorial integrity that is inconsistent with the institutions we have.”

“Greenland is part of NATO,” Løkke Rasmussen said. “Denmark is part of NATO, and we can exercise our sovereignty in Greenland.”

In his remarks, Trump also said that the United States is prosperous and has a strong economy, in sharp contrast to Europe.

“I want to see Europe going well, but it’s not going in the right direction,” Trump said, also noting that “we want strong allies, not dangerously weak allies.” He said of European economies: “You all follow us, and you follow us.”

His arrival was delayed after a minor electrical problem aboard Air Force One forced a return to Washington to change the plane. As Trump’s motorcade headed down a narrow path to the speech site, spectators — including some skateboarders — lined the road. Some made obscene gestures, and one of them held up a paper cursing the president.

Billionaires and senior executives gathered inside the forum’s congressional hall, which included about 1,000 people, to attend Trump’s keynote speech. The space was filled with standing room only. Attendees used headphones to listen in six languages ​​as well as English, and the reaction was mostly polite applause.

After that, Trump met with the leaders of Poland, Belgium, and Egypt and reiterated again that the United States would not invade Greenland.

“The military issue is not on the table,” Trump said, suggesting that the parties involved would use better judgment.

The threat of tariffs looms large

What could exacerbate the crisis is Trump’s threats to impose heavy US import taxes on Denmark and seven other allies unless they negotiate the transfer of the semi-autonomous territory – and some Europeans say they will not.

Trump said the tariffs will start at 10% next month and rise to 25% in June.

British Prime Minister Keir Starmer pledged during his weekly questioning in the House of Commons that “Britain will not compromise our principles and values ​​on the future of Greenland under the threat of tariffs, and that is my clear position.”

Read more: Senior EU official calls Trump’s Greenland tariff threat a mistake

European Commission President Ursula von der Leyen warned that if Trump goes ahead with tariffs, the bloc’s response “will be consistent, united and proportionate.”

Experts and economists warn that Trump’s threat to impose tariffs on Greenland could cripple the US economy if it torpedoes the trade truce reached last summer between the US and the European Union. But the US stock market largely recovered on Wednesday from its worst day since October after Trump’s talk of tariffs related to Greenland spooked investors.

Overshadowed by Trump’s housing plan

Trump’s platform was supposed to focus on how to lower housing prices in the United States – part of a larger effort to lower the cost of living, which could pose a liability for the president’s party in the midterm elections in November.

Instead, Greenland won the day, with Trump criticizing Denmark for being “ungrateful” for US protection of the Arctic island during World War II. He also mistakenly referred to Iceland, mixing that country with Greenland four times during his speech and for the fifth time since Tuesday.

“This massive, unsafe island is actually part of North America,” Trump said. “This is our territory.”

When he finally mentioned housing in his speech, Trump indicated that he did not support any measure to encourage affordability. He said lowering high home prices hurts their value and makes homeowners who once felt rich because of the equity in their homes feel poorer.

“You have to be prepared for almost anything.”

In Nuuk, resident Johnny Hedman said it was “insulting” for Trump to “talk about the people of Greenland and the nation of Greenland as just an ice cube.” He spoke as he headed out to buy a camping stove and instant mashed potatoes.

“Living like this, you have to be prepared for almost anything,” Hedman said. “And now there’s another threat — Trump.”

He added: “With this crazy person, you don’t know what will happen tomorrow. He can make things very bad for everyone.”

Weissert and Madhani reported from Washington. Associated Press writers Emma Burrows in Nuuk, Greenland, Jamie Keaten in Davos, and Michelle L. Price in Washington.