US President Donald Trump has signalled a major shift in his hardline stance on Greenland, dialling back threats of tariffs and force after announcing what he called a “framework deal” following talks with Nato Secretary General Mark Rutte on the sidelines of the World Economic Forum in Davos.
Trump said the emerging agreement would address security and strategic concerns in the Arctic, marking a sharp departure from his earlier rhetoric about seizing Greenland or using tariffs as leverage against European allies.
"I think it puts everybody in a really good position, especially as it pertains to security, and minerals and everything else," Trump said.
Tariffs dropped
As part of the shift, Trump withdrew plans to impose tariffs on several European countries from February 1.
“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump posted. “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.”
What is the Greenland 'framework' deal?
Trump announced on Truth Social that the US and Nato had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region.”
Why Greenland matters to the US?
Later, speaking to CNBC, he described it more cautiously as “a concept of a deal,” offering few specifics but confirming that negotiations were ongoing.
Trump himself gave few further details on the agreement, but said talks were continuing concerning a US missile defence shield that would be in part based in Greenland.
Golden Dome and missile defence
While details remain sparse, Trump indicated that talks include cooperation on a US missile defence system — dubbed the “Golden Dome” — parts of which could be based in Greenland.
"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. 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," he said in a post.
The missile shield, aimed at countering threats from Russia and China, has long been cited by Trump as central to his interest in the Arctic territory.
Will Greenland stay with Denmark?
When asked whether Greenland would remain part of the Kingdom of Denmark under the proposed framework, Nato chief Mark Rutte said the issue had not arisen in his talks with Trump.
“That issue did not come up anymore in my conversations tonight with the president,” Rutte said.
A Nato spokesperson later clarified that Rutte had not proposed any compromise on Greenland’s sovereignty during discussions.
Who really runs Greenland?
‘Small pockets’ of land
According to the NYT reports, the compromise deal could see the US granted sovereignty over small pockets of Greenland where military bases are located. Unnamed officials likened the idea to Britain’s sovereign military bases in Cyprus, which remain British territory despite being located on the island.
The framework could also allow the US to mine rare earth minerals without seeking Danish permission.
Criticial minerals of Greenland
Keeping China and Russia out
A Nato spokesperson said future negotiations between Denmark, Greenland and the United States would focus on ensuring that “Russia and China never gain a foothold — economically or militarily — in Greenland.”
“Discussions will focus on ensuring Arctic security through the collective efforts of Allies, especially the seven Arctic Allies,” the statement added.
The 1951 agreement back on the table
CNN reported that part of the proposed framework involves renegotiating the 1951 defence agreement that formalised the US military presence in Greenland during the Cold War.
The original deal allowed the US to operate bases such as Thule, Narsarsuaq and Sondestrom, while sovereignty remained with Greenland.
A revised agreement could give Washington greater autonomy over its bases — including freedom to build missile defence infrastructure — without seeking Danish approval.
Greenlanders upset?
The announcement has drawn sharply divided reactions.
Greenlandic lawmaker Aaja Chemnitz dismissed Trump’s claims as “completely absurd,” saying, “Nato has absolutely no mandate to negotiate anything whatsoever without us in Greenland. Nothing about us, without us.”
Others, however, expressed cautious optimism.
“It looks more promising than anything I have seen in weeks,” said Mikkel Runge Olesen of the Danish Institute for International Studies.
What Denmark said
Denmark, meanwhile, urged restraint, with foreign minister Lars Lokke Rasmussen saying the matter should be handled through diplomacy, not social media.
“What is crucial for us is that we get to end this with respect for the integrity and sovereignty of the kingdom and the right of the Greenlandic people to self-determination,” Rasmussen said.
US's long-running obsession with Greenland
Trump rules out force — for now
"Price of safety for national and international security; it is better that we have Greenland than it is without, it's going to be better for Europe and us," Trump said when asked if he sees a price for Greenland.
"We want Greenland only for security, not for anything else; even Mark wants security for NATO and beyond," he added.
Trump has formally stepped back from threats of tariffs and military pressure, presenting the framework as a lasting solution.
“It’s a deal that everybody’s very happy with,” Trump told reporters after meeting Rutte. “It’s a long-term deal. It’s the ultimate long-term deal. It puts everybody in a really good position, especially as it pertains to security and to minerals.”
He added: “It’s a deal that’s forever.”
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