In a surprising turn of events, US President Donald Trump has walked back his threat to impose sweeping tariffs on eight European countries, citing the “framework of a future deal” regarding Greenland. The president’s latest comments come just days after he had vowed to introduce steep import duties on a string of US allies over their support for Greenland’s continued status as an autonomous Danish territory.
According to Trump, the US will not be hitting Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland with 10% tariffs starting from 1 February, as previously threatened. The president had also warned of raising these tariffs to 25% from 1 June, prompting widespread concern and criticism from senior European politicians.
In a meeting with NATO Secretary General Mark Rutte on Wednesday, Trump claimed to have formed “the framework” of a deal over Greenland, though he provided few details. The president stated that the understanding would be “in force for ever” and that it would be “a very good deal for the United States, also for them.” However, he acknowledged that the agreement was “a little bit complex” and promised to explain it further down the line.
Addressing the World Economic Forum in Davos, Switzerland, Trump said the US would not use force to seize Greenland, but stressed that he still planned to wield the country’s economic and diplomatic power to obtain it. He also extolled the benefits of US tariffs, telling the assembled delegates that they were “all party to them – in some cases, victims to them.”
The president’s latest comments represent a significant shift from his previous hardline stance on Greenland. Trump had previously claimed that Denmark owed Greenland to the US due to its assistance during World War II, a claim that has been debunked by historians.
Concerns over Trump’s aggressive trade strategy have not been limited to the international stage, with the president’s tariffs repeatedly raising fears for the US economy. Wall Street suffered its worst day since October on the first trading day after Trump’s threat to attack NATO allies with tariffs over Greenland.
Despite the latest developments, global markets have since recovered, with the benchmark S&P 500 rising 1.2% in New York and the Dow Jones Industrial Average climbing 1.2% to close in on the 50,000 mark.
