BY PC Bureau
January 22, 2026: U.S. President Donald Trump has abruptly reversed his threat to impose steep tariffs on several European Union countries and the United Kingdom following a closed-door meeting with NATO Secretary General Mark Rutte on the sidelines of the World Economic Forum (WEF) annual meeting in Davos.
The tariffs had been linked to European opposition to Trump’s renewed push to bring Greenland under U.S. control. In a late Wednesday post on Truth Social, Trump said he and Rutte had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” describing the discussions as “very productive.”
“Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st,” Trump wrote, effectively halting measures that had threatened to escalate into a major transatlantic trade dispute.
The reversal marks a sharp de-escalation after tensions flared over the weekend, when Trump warned of a 10% tariff on imports from eight NATO allies—Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. He cited their participation in recent military exercises in Greenland and their refusal to consider U.S. acquisition of the semi-autonomous Danish territory. The tariffs were slated to rise to 25% by June if no agreement was reached, prompting widespread criticism in Europe and warnings of retaliation.
European Commission President Ursula von der Leyen had described the tariff threat as a “mistake” and a form of economic coercion, while Danish officials reiterated that Greenland’s sovereignty and right to self-determination were non-negotiable.
Trump just said on Truth Social:
“Meeting with NATO boss Mark Rutte went huge.”
“Tariffs not happening Feb. 1st. No more trade war vibes for now.”
Like I said before, Trump loves to drop the market and pump it back up. pic.twitter.com/galDv4EHqV
— Kodi (BMNR) 📌 (@SweatyKodi) January 21, 2026
READ: Manipur Makes Fresh Bid to Restore Free Bus Movement
The Greenland issue dominated early discussions at Davos, where Trump delivered a lengthy address on Wednesday reiterating his belief that U.S. control of Greenland was vital for national security and Arctic strategy. Notably, he explicitly ruled out the use of military force—marking a shift in tone—saying, “I don’t have to use force. I don’t want to use force. I won’t use force.”
Details of the proposed framework remain unclear. No public information has been released regarding potential arrangements on mineral access, military basing, missile defense systems, or any form of shared governance. Trump said the understanding would benefit “the United States of America and all NATO nations,” framing it as a collective response to rising geopolitical competition in the Arctic, particularly from Russia and China.
Further negotiations will be led by Secretary of State Marco Rubio and Special Envoy Steve Witkoff, with Vice President JD Vance expected to be involved as needed. The negotiating team will report directly to the president. Sources familiar with the discussions suggest the talks may expand into broader Arctic cooperation on defense and resource development, though Danish and Greenlandic authorities have yet to issue formal responses.
The announcement brought immediate relief to global markets, with U.S. stock indices rebounding sharply after days of volatility driven by tariff concerns. European officials expressed cautious optimism but stressed that any agreement must be transparent and respect national sovereignty.
Trump’s interest in Greenland dates back to his first term, when his 2019 proposal to purchase the island was swiftly rejected by Denmark. The issue has gained renewed prominence since his 2024 reelection, fueled by strategic considerations including rare earth mineral reserves, climate-driven changes opening new Arctic shipping routes, and military positioning in the High North.
While the tariff rollback has eased immediate pressure on U.S.-Europe trade relations, analysts caution that the underlying dispute over Greenland’s future remains unresolved. European leaders are expected to take up the issue at an upcoming summit in Brussels, with many viewing the Davos framework as a starting point for dialogue rather than a final settlement.
The World Economic Forum continues through the week under the theme “A Spirit of Dialogue,” with Trump’s appearance—and the renewed focus on Greenland—emerging as one of the most closely watched developments of the gathering.
