DAVOS, Switzerland — President Trump announced on Wednesday that he will not follow through on his threat to impose tariffs on eight European allies on Feb. 1 over their opposition to his claim of Greenland.
Why it matters: Trump already dropped his threat to invade Greenland earlier Wednesday, and he's now reversed his tariff threat — which had triggered a crisis in the transatlantic alliance and rattled global markets.
- He claimed to have found a "solution" to the Greenland crisis during a meeting with NATO Secretary-General Mark Rutte.
- Trump told reporters that the deal "gives us everything we needed." Asked whether Greenland would be part of the U.S., he said, "It is the ultimate long-term deal. It is an infinite deal."
What they're saying: "We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote on Truth Social.
- "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. Further information will be made available as discussions progress."
- "Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others, as needed, will be responsible for the negotiations — They will report directly to me," Trump wrote.
The other side: Denmark's foreign minister welcomed the "positive" news and said he hoped for talks to address Trump's concerns about Greenland.
- "What is important for us is that we end this in a way that respects the Greenlandic people," he said.
The latest: Markets, which were unnerved by the tariff threat, went into a full relief rally on the news. The S&P 500 was up nearly 1.5% and long-term bond yields fell.
- Treasury Secretary Scott Bessent told reporters: "I told you everyone should keep cool until the president got here."
Between the lines: Trump has repeatedly stated — including earlier on Wednesday — that he would not accept any solution that did not give full control of Greenland to the United States.
- After Trump's speech, Denmark welcomed his statement that he would not take Greenland by force, but reiterated that it would not negotiate over the question of sovereignty.
- It's unclear how substantive the framework Trump and Rutte discussed is, or whether it would fulfill Trump's criteria that the U.S. own Greenland in perpetuity.
- Asked by CNBC's Joe Kernen whether the deal involved ownership, Trump said it was "a little bit complex."
This story is breaking news. Please check back for updates.
