Topline
President Donald Trump on Wednesday called off his plan to impose new tariffs on eight European countries providing military support to Greenland, saying he’s reached a “framework of a future deal with respect to Greenland”—though it’s unclear if it involves the U.S. acquiring the island.
President Donald Trump speaks during a reception with business leaders on the sidelines of the World Economic Forum (WEF) annual meeting in Davos on January 21, 2026. (Photo by Mandel NGAN / AFP via Getty Images)
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Key Facts
Trump threatened over the weekend to impose a 10% tariff, starting Feb. 1 and increasing to 25% in June, on Denmark and seven other countries providing enhanced security to Greenland in the wake of Trump’s threats to take over the island.
Trump canceled the tariffs in an announcement on Truth Social after meeting with NATO Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland.
When asked by CNN if the deal would include the U.S. taking ownership of Greenland, Trump did not answer directly, but said, “it’s a long-term deal, it’s the ultimate long-term deal, and I think it puts everybody in a really good position especially as it pertains to security and minerals and everything else.”
Trump told CNBC the deal would last “forever.”
Without offering details, Trump said on Truth Social “additional discussions are being held concerning The Golden Dome as it pertains to Greenland” and “further information will be made available as discussions progress.”
Earlier on Wednesday, Trump backed off his threats to use military force to seize control of Greenland, though he reiterated in his speech at Davos his push to acquire the Danish territory, insisting the U.S. was the only country capable of defending it from adversaries such as China and Russia.
What To Watch For
Trump said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and other officials would be involved in negotiations on Greenland.
Tangent
The European Union said Wednesday it would pause implementation of a trade deal reached with the Trump administration last July amid Trump’s new tariff threats. The EU had agreed to a 15% tariff on most goods, down from a steep 30% tariff that was set to take effect in August. It’s unclear if the EU will restart implementation of the trade deal after Trump canceled his latest tariff threat.