President Donald Trump said Wednesday that he and NATO Secretary General Mark Rutte have agreed to what he described as a framework for a future agreement involving Greenland, an announcement that prompted an immediate rebound in U.S. stocks and the suspension of looming tariffs on several European countries.
Trump said the understanding, reached following discussions connected to the World Economic Forum in Davos, led him to drop punitive tariffs that had been scheduled to take effect Feb. 1. In television interviews shortly after posting the update on his Truth Social account, Trump repeatedly characterized the arrangement as a “concept of a deal,” offering few specifics but signaling that talks would continue.
According to Trump, the framework touches on U.S. access to mineral rights and cooperation tied to the administration’s proposed “Golden Dome” missile defense system. He indicated that both the United States and partners connected to Greenland would participate in those elements. The White House later said further details would be unveiled as negotiations proceed.
Markets reacted swiftly. Stocks, which had fallen earlier in the week amid escalating rhetoric over Greenland, surged after Trump confirmed the tariff pause. Investors appeared to welcome the de-escalation with Europe and the prospect of structured talks replacing threats of trade penalties.
The announcement followed reports that some NATO members discussed giving the United States sovereignty over limited areas of Greenland, a semi-autonomous territory of Denmark, though the scope and seriousness of those discussions remain unclear. Trump did not say whether the framework would ultimately involve U.S. ownership of the island, a goal he has publicly pressed in recent weeks.
The episode marks a sharp turn in an increasingly contentious saga. The administration had floated buying Greenland or even using military leverage to gain control, moves that were firmly rejected by Danish and Greenlandic leaders. As tensions rose, several European NATO nations bolstered their military presence in the Arctic region. Trump responded over the weekend by threatening new tariffs starting at 10% next month and rising to 25% in June.
Speaking earlier Wednesday at Davos, Trump framed U.S. interest in Greenland as a national-security issue while saying he would not pursue the territory through military force, a notable shift from prior remarks.
Reaction in Europe was cautious but measured. Danish officials signaled relief that dialogue appeared to be resuming, while leaders in Germany urged patience, warning against celebrating before concrete terms are known.
Trump said negotiations will be handled by Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff, among others, reporting directly to him.
Source: CNBC