Davos, Switzerland. US President Donald Trump said on Wednesday he has stepped back from threats to impose tariffs linked to Greenland and that a framework deal is in sight to end the dispute.
Trump outlines framework and pauses planned tariffs
Trump told CNBC that the framework Greenland deal he announced will be a long-term agreement and that details will be revealed later. He described the deal as “a little bit complex” and said it would be explained “down the line,” adding, “This is forever.”
In a post on his Truth Social platform, Trump wrote that a framework had been formed for a future deal “with respect to Greenland and, in fact, the entire Arctic Region.” He said that, based on that understanding, he would not impose tariffs that were scheduled to go into effect on February 1.
Comments follow Davos speech and meetings
Trump made the comments after ruling out taking the Danish territory by force in a speech at the World Economic Forum annual meeting in Davos. He met with NATO Secretary General Mark Rutte and acknowledged financial markets’ discomfort with his earlier threats.
Trump said he had tasked Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff to take part in discussions, and said more information would be made available “as discussions progress.”
In his Davos speech, Trump said he did not need to use force, adding: “I don’t want to use force. I won’t use force.”
Markets react to shift in posture
The change in posture on tariffs sparked a stock market rally, with the S&P 500 index up over 1.5%, adding to a recovery after the sharpest equities selloff in three months.
What details will the US make public next about the framework agreement involving Greenland and the Arctic Region?