US President Donald Trump abruptly reversed course on Wednesday, scrapping threatened tariffs against European nations after announcing a “framework” deal with NATO over Arctic security.
The dramatic turnaround came hours after Trump used his World Economic Forum speech in Davos to demand Greenland and threaten the cohesion of NATO.
In a post on Truth Social, Trump said he had agreed with NATO Secretary General Mark Rutte on a framework that “gets everything we wanted, including especially real national security and international security.”
He added that based on this understanding, he would not impose tariffs scheduled to take effect on 1st February.
From threats to backtrack
Trump had threatened tariffs of up to 25% on eight European countries, including Denmark and France, over their resistance to US control of Greenland. The levies were to start at 10% next month and climb to 25% in June.
His Davos speech appeared on the verge of rupturing NATO, with Trump suggesting the alliance wouldn’t defend the US if needed and demanding territory he described as “cold and poorly located”.
“We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But I won’t do that, OK?” Trump said during his address.
Golden Dome and military bases
According to AP, Trump said “additional discussions” on Greenland concerned the Golden Dome missile defense program, a multilayered $175 billion system that will for the first time put US weapons in space.
Trump offered few details on the framework, saying they were still being worked out. However, one idea NATO members have discussed involves Denmark and the alliance working with the US to build more American military bases on Greenland, according to a European official familiar with the matter who spoke to AP on condition of anonymity.
It remained unclear if this proposal was included in Trump’s announced framework.
Trump described the agreement as a “forever deal” in an interview with CNBC, though he provided minimal specifics about what it entails beyond improved security arrangements.
European relief
Danish Foreign Minister Lars Løkke Rasmussen welcomed Trump ruling out taking “Greenland by force” and pausing “the trade war with Europe”.
“Now, let’s sit down and find out how we can address the American security concerns in the Arctic while respecting the red lines of the Kingdom of Denmark,” he said in a statement, according to AFP.
Netherlands Prime Minister Dick Schoof called Trump’s move a sign of “de-escalation”, while Italian Prime Minister Giorgia Meloni said it was “essential to continue and promote dialogue between allied nations.”
NATO’s Rutte told AFP that “much work remained” on Greenland following the talks. When asked if Denmark would continue to control the territory, he said the subject of sovereignty “did not come up”.
Markets rebound, Greenland prepares
Financial markets that had fallen sharply on Trump’s threatened tariffs bounced back Wednesday following the reversal.
Before the backdown, Greenland’s government had responded by telling citizens to prepare for crisis. It published a handbook urging residents to ensure they have sufficient food, water, fuel and supplies to survive five days.
“We just went to the grocery store and bought the supplies,” Tony Jakobsen in Greenland’s capital Nuuk told AP, displaying candles, snacks and toilet paper.
Another resident, Johnny Hedemann, called it “insulting” that Trump “talks about the Greenlandic people and the Greenlandic nation as just an ice cube.”
During his speech, Trump mistakenly referred to Greenland as Iceland four times.
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Photo credit: Evangeline Shaw, Unsplash