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Trump Drops Tariff Threat After ‘Framework’ Greenland Deal
Posted
January 22, 2026
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4:36Now PlayingDan Tannebaum, Partner at Oliver Wyman & Senior Fellow at the Atlantic Council, joins from Davos with reaction to President Trump's remarks and 'framework' Greenland deal.
President Donald Trump said he would refrain from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland, citing a “framework of a future deal” he said was reached regarding the island.
The decision, which Trump announced Wednesday on social media, marks a stark reversal for a president who has repeatedly attempted to coerce Europe over Greenland. It came after a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland.
Still, Trump did not detail the parameters of the so-called “framework” and it was unclear what the agreement entails, especially since Denmark earlier Wednesday ruled out negotiations over ceding the semi-autonomous island to the US.
“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.”
US stocks jumped on the news that tariffs wouldn’t be implemented, with the S&P 500 and Nasdaq 100 rallying to session highs. Treasuries extended gains, and the Bloomberg Dollar Index rose to a daily high.
Danish Prime Minister Mette Frederiksen said her nation is prepared to negotiate “on all political matters — security, investments, the economy. But we cannot negotiate our sovereignty.”
“I have been informed that this was also not the case,” she said in a statement on Thursday.
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