Trump drops Europe tariff threats after reaching deal on Greenland framework
Trump threatened tariffs on a group of European countries that backed Greenland amid the president's acquisition push
‘The Big Money Show’ panel reacts to President Donald Trump’s Davos speech, his economic agenda for Main Street and renewed pressure on NATO allies.
President Donald Trump on Wednesday announced he will no longer move forward with tariffs on a group of European allies after he reached a deal with NATO's leader on a framework for a future deal on Greenland.
The president took to his Truth Social platform and said that, after a meeting with NATO Secretary General Mark Rutte, he is backing off imposing tariffs on several European countries that stood up for Greenland's sovereignty amid Trump's push to acquire the island.
"Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote.
"This solution, if consummated, will be a great one for the United States of America, and all NATO Nations. Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland."
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President Donald Trump says he reached agreement with NATO on a "framework for a future deal" on Greenland. (Anna Moneymaker/Getty Images / Getty Images)
Trump on Saturday said he would impose tariffs on eight European countries that deployed troops to Greenland to help bolster its defenses and demonstrate the ability to rapidly deploy personnel to the Arctic island nation.
Those countries include Denmark, which governs Greenland as a semi-autonomous territory, as well as Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. All of those countries are members of the NATO alliance.
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Trump met with NATO Secretary General Mark Rutte to discuss the future framework for Greenland. (Oleg Nikishin/Getty Images / Getty Images)
Trump said he would impose a 10% tariff on those countries effective Feb. 1, with the levy rising to 25% on June 1. He added, "This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland."
Leaders of those eight countries responded with a joint statement Sunday, explaining that as members of NATO they are "committed to strengthening Arctic security as a shared transatlantic interest," adding that the exercise was coordinated with the Danish military and "poses no threat to anyone."
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"We stand in full solidarity with the Kingdom of Denmark and the people of Greenland. Building on the process begun last week, we stand ready to engage in a dialogue based on the principles of sovereignty and territorial integrity that we stand firmly behind," they wrote.
"Tariff threats undermine transatlantic relations and risk a dangerous downward spiral," the eight countries warned.
Greenland has substantial reserves of critical minerals and is also strategically located in the Arctic. (Julia Wäschenbach/picture alliance/Getty Images / Getty Images)
Ahead of Trump's announcement of a framework deal with NATO over Greenland, the president told the World Economic Forum in Switzerland Wednesday he "won't use force" to take over Greenland after he previously suggested that all options, including military action, were on the table.
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Details surrounding the framework that Trump and Rutte reached remain unclear, and the president said in his Truth Social post that he will task Vice President JD Vance, Secretary of State Marco Rubio, special envoy Steve Witkoff and others as needed to carry out the negotiations.
This is a developing story. Please check back for updates.