At a Glance
- President Trump says he has a “concept of a deal” with European nations over Greenland
- Planned 10% tariffs on troop-contributing countries suspended; hike to 25% in June now off
- NATO Secretary General Mark Rutte described as key interlocutor; Denmark’s role unclear
- Markets rallied after Trump’s Truth Social post flagged possible agreement
Why it matters: The statement eases immediate trade-war fears but leaves Greenland’s status-and U.S. relations with key allies-unsettled.
President Trump told CNBC from the World Economic Forum in Davos that he has reached the “concept of a deal” with European partners on his push to “acquire” Greenland, while simultaneously scrapping threatened tariffs on countries that deployed troops to the island.
Speaking with CNBC’s Joe Kernen, Trump offered few specifics but said the arrangement would be “forever,” include mineral rights, and center on Arctic security. “We have a concept of a deal. I think it’s gonna be a very good deal for the United States. Also for them,” he said. “We’re gonna work together on something having to do with the arctic as a whole, but also Greenland. And it has to do with the security and other things.”
The president indicated that NATO Secretary General Mark Rutte brokered the discussions, though it remains uncertain how many nations have signed on. When asked whether Rutte had consulted Denmark-which governs the semi-autonomous territory-Trump replied, “I assume he’s been speaking to them, I assume he’s been speaking to all of them.”
Trump praised Rutte as a “very strong leader.” The former Dutch prime minister has voiced admiration for Trump, once referring to him as “daddy,” yet holds no authority to transfer Greenland’s sovereignty. Rutte’s exact role, and any mandate from Copenhagen, has not been clarified.
Shortly after the interview aired, NATO issued a carefully worded statement: “Talks among NATO allies on the framework Trump referenced will focus on ensuring Arctic security through the collective efforts of allies, especially the seven Arctic allies.”
Tariff threat lifted-for now
The pivot away from tariffs marks a notable de-escalation. Trump had previously warned of 10% duties on European states that sent troops to Greenland, set to take effect Feb. 1 and rise to 25% in June if the island were not placed under stronger U.S. influence. Those levies are now off the table, according to the president’s comments.
Stock futures jumped after Trump teased the prospective deal on Truth Social, though the president later complained that markets sometimes drop on his positive announcements. The CNBC segment, noted for its friendly tone, followed within the hour.
European leaders react
Reactions among U.S. allies ranged from cautious to confrontational. Swedish Foreign Minister Maria Malmer Stenergard wrote on X: “Good that Trump has now backed away from tariffs on those of us who have supported Denmark and Greenland. The demands about moving borders has received well-earned criticism…. We will not be blackmailed. It appears that our work together with allies has had an impact.”
French President Emmanuel Macron, speaking Tuesday, said, “We prefer respect to bullies and science to conspiracies,” remarks widely interpreted as a swipe at Trump’s worldview.
Canadian Prime Minister Mark Carney was blunter. “This bargain no longer works,” he said of U.S. leadership. “We are in the midst of a rupture, not a transition.”
Denmark, Norway, Sweden, France, Germany, the U.K., Finland, and the Netherlands each dispatched small military contingents to Greenland to deter any U.S. move against the territory. Trump mistakenly referred to Iceland instead of Denmark during his Wednesday address to the forum.
Oil and other flashpoints
Beyond Greenland, Trump told Kernen the United States would sell Venezuelan crude but “keep some” proceeds for itself-echoing his long-standing view that Washington should have seized Iraqi oil. The comment underscores the administration’s transactional approach to foreign policy.
Whether a formal agreement emerges remains to be seen. European capitals are expected to release details in coming days, yet Trump has shown a willingness to revive threats if he deems negotiations unsatisfactory. For now, the suspension of tariffs offers breathing room, even as uncertainty clouds America’s future relationship with its closest democratic partners.
