Trump backs down on Greenland tariffs, announces deal framework reached

When President Trump arrived in the snow covered Swiss Alps on Wednesday afternoon, European leaders feared that his push to acquire Greenland could ignite a conflict between Europe and the United States. By nightfall, Trump had retreated from that position.

The reversal came after several days of private discussions involving Trump, his advisers, and European leaders, including NATO Secretary General Mark Rutte and German Chancellor Friedrich Merz, according to people familiar with the talks. European governments, united in opposing any U.S. takeover of Greenland, combined incentives with warnings. They floated proposals to strengthen Arctic security while also cautioning that a serious rift could damage the United States and destabilize NATO.

Following a meeting with Rutte on Wednesday, Trump suspended planned tariffs on European countries, saying he had “formed the framework of a future deal” concerning Greenland, the world’s largest island.

The details of that framework remain unsettled, but European officials say negotiations are likely to focus on several areas. These include a possible agreement with Denmark allowing U.S. forces to be stationed at bases in Greenland, along with expanded European efforts to enhance Arctic security. The United States could also gain a right of first refusal on investments in Greenland’s mineral resources, effectively blocking Russia and China from accessing them. In return, Trump would withdraw his tariff threats, officials said.

Trump described the framework as “really fantastic” when speaking to reporters, though he offered little substance. He said he assumed Denmark, which governs Greenland, had been informed about the potential agreement.

The White House declined to comment on specifics, and a Trump administration official said the scope of the talks was still evolving. White House press secretary Karoline Leavitt said in a statement that if the deal moves forward, the United States would achieve all of its strategic objectives related to Greenland at minimal cost and on a lasting basis.

There were early indications on Wednesday that Trump was open to compromise. During a one hour speech at the World Economic Forum, he said he would not use the military to seize control of Greenland.

That marked a sharp change in tone from just days earlier, when Trump refused to rule out military action and shared an image online depicting Greenland covered by an American flag.

The shift eased tensions among European leaders, who had been bracing for damaging tariffs and a confrontation that could have shaken NATO. Last weekend, Trump said he would impose 10 percent tariffs on eight countries starting next month if no deal was reached, with rates rising to 25 percent in June.

In a post on Truth Social Wednesday night, Trump said he would delay the tariffs so that Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff could pursue negotiations on Greenland.

“The day is ending on a better note than it began,” said Danish Foreign Minister Lars Løkke Rasmussen.

Some of Trump’s advisers privately worried that his confrontational rhetoric had complicated efforts to reach an agreement with Denmark. Administration officials have recently discussed compromise proposals that would grant the United States access to minerals and land for military installations, according to one official. Some outside allies of the president also expressed concern after markets dropped sharply following Trump’s tariff threats tied to Greenland.

Officials on both sides of the Atlantic drew different conclusions from the episode.

U.S. officials argued that Trump’s aggressive stance forced European leaders to engage after months of resisting his push for control of Greenland. European officials countered that maintaining a unified opposition helped steer Trump toward a deal short of acquiring the territory.

According to a NATO spokesman, Trump and Rutte discussed the importance of Arctic security for the United States and other alliance members. Future talks will focus on cooperation within NATO to safeguard the region, while more detailed negotiations among Denmark, Greenland, and the United States will aim to ensure that Russia and China never gain an economic or military foothold on the island.

Rutte has faced criticism for his deferential approach to Trump. At NATO’s June summit, he referred to the president as “daddy” and has frequently praised him. Still, U.S. and European officials say the two have developed a strong working relationship.

Earlier Wednesday, Trump delivered pointed criticism of long standing U.S. allies during his speech, with their representatives in attendance. He said Europe had lost its way, accused Denmark of ingratitude, claimed Switzerland owed its survival to U.S. support, and mocked French President Emmanuel Macron for wearing aviator sunglasses.

At the same time, Trump sought to lower tensions, calling for immediate negotiations over Greenland. “I don’t have to use force,” he said. “I don’t want to use force. I won’t use force.”

Trump also suggested that NATO members had a duty to support a U.S. acquisition of Greenland because of America’s role in sustaining the alliance. “We give so much,” he said, “and we get so little in return.”