Greenland Deal Reached: Trump Abandons Tariff Threat After Productive NATO Talks

Lisa Chang, Asia Pacific Correspondent
2 Min Read
⏱️ 2 min read

In a surprising turn of events, US President Donald Trump has announced that he will not be imposing tariffs on a group of close European allies after reaching the “framework of a future deal” over Greenland. This decision comes just hours after the President delivered a fiery speech at the World Economic Forum in Davos, Switzerland, where he doubled down on his controversial plans to acquire the Danish-controlled territory.

According to Trump’s statement on Truth Social, American and NATO representatives “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region” during a closed-door meeting with NATO Secretary-General Mark Rutte. The President described the discussions as “very productive” and said the potential solution would be “a great one for the United States of America, and all NATO Nations” if it is “consummated”.

This represents a significant reversal from Trump’s earlier stance, where he had threatened to impose tariffs on the European countries that had objected to his push to acquire Greenland. The President’s announcement has been welcomed by European leaders, with Ireland’s Deputy Prime Minister Simon Harris describing it as “a welcome development” that gives “credence and credibility” to the EU’s strategy.

However, not everyone is convinced that this newfound cooperation will last. Sweden’s Deputy Prime Minister Ebba Bush cautioned that “today’s progress might be tomorrow’s headache”, while highlighting the long road ahead to rebuild trust between the EU and the US.

The details of the proposed Greenland deal remain unclear, with Rutte stating that the issue of whether the territory will remain with Denmark did not come up in his conversations with Trump. The Danish Foreign Minister, Lars Løkke Rasmussen, also said he had spoken with Rutte but declined to provide specifics on the agreement.

As the geopolitical landscape in the Arctic region continues to evolve, this latest development underscores the need for careful diplomacy and international cooperation to navigate the complex challenges that lie ahead.

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Lisa Chang is an Asia Pacific correspondent based in London, covering the region's political and economic developments with particular focus on China, Japan, and Southeast Asia. Fluent in Mandarin and Cantonese, she previously spent five years reporting from Hong Kong for the South China Morning Post. She holds a Master's in Asian Studies from SOAS.
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