President Donald Trump has announced he will not impose new tariffs on eight European countries after reaching a security framework with NATO Secretary General Mark Rutte focused on Greenland and the broader Arctic region. The development was reported by NBC News and follows days of escalating trade and security tensions between the United States and Europe.
Markets reacted quickly to the reversal, with stocks climbing to their daily highs after the announcement. Trump confirmed the decision Wednesday, saying he and Rutte laid the groundwork for a future agreement during what he described as a “very productive meeting.”
In a post on Truth Social, the president said the discussions produced a framework covering Greenland and “the entire Arctic Region.” He added that, based on that understanding, the tariffs scheduled to take effect on February 1 would no longer move forward.
The Arctic security angle changed the calculus
NATO spokeswoman Allison Hart confirmed the meeting was productive and said the framework centers on Arctic security through cooperation among Allied nations, particularly the seven Arctic Allies. This approach comes amid other political controversies like federal agents’ seizure of reporter devices and legal pushback. She said future talks between Denmark, Greenland, and the United States will focus on ensuring Russia and China do not gain an economic or military foothold in Greenland.
The agreement pauses what had become a significant international flashpoint. Just days earlier, Trump had threatened to impose a 10 percent tariff on Denmark, the United Kingdom, and other countries involved in NATO exercises unless they agreed to allow the United States to take control of Greenland. He had also warned that the tariff rate would increase to 25 percent by June if no deal was reached.
While details of the framework were not immediately released, Trump said in an interview that it was “pretty much the concept of a deal” and suggested it could last indefinitely. The reversal came as the European Union’s parliament halted final approval of a major trade deal reached with the United States last summer, and as EU leaders prepared for an emergency summit to coordinate a response to the tariff threats.
Despite backing away from tariffs, Trump reiterated his interest in Greenland earlier Wednesday while speaking at the World Economic Forum in Davos, Switzerland. He said he still wanted the United States to control the semi-autonomous Danish territory but ruled out using force, calling instead for immediate negotiations with Denmark. This stance comes amid broader criticism from lawmakers at home, where a Republican lawmaker just blasted Trump’s foreign policy approach as “utter buffoonery” and is considering impeachment.
Denmark welcomed the de-escalation. Foreign Minister Lars Løkke Rasmussen said the day “ended on a better note than it began,” praising Trump for ruling out the use of force and pausing the trade dispute. He added that discussions would now focus on addressing U.S. security concerns in the Arctic while respecting Denmark’s core principles.
Trump said further talks on Greenland will be led by Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff.
Published: Jan 21, 2026 07:15 pm