President Donald Trump announced on Wednesday that he is dropping planned tariffs on several European countries, following what he described as reaching a “framework of a future deal” with NATO on Greenland and Arctic security. Trump made the announcement at the World Economic Forum in Davos, Switzerland, where he has been attending discussions with world leaders.
Trump said the framework, agreed with NATO Secretary-General Mark Rutte, establishes a plan for cooperation on Arctic security and makes the previously threatened tariffs unnecessary. He framed the agreement as a major achievement for the US, describing it as a “very productive meeting” that could benefit both the US and its NATO allies.
Earlier, Trump had threatened tariffs on eight European countries to pressure them into accepting US influence over Greenland, a semi-autonomous territory of Denmark. While his earlier comments included unusual suggestions about acquiring Greenland, he emphasized in Davos that the US would not use military force and that the framework is focused on security cooperation, not sovereignty.
The announcement had a positive effect on global markets, with US stock indices rising after news of the tariff cancellation. Analysts said it eased fears of a trade confrontation between the US and European nations.
However, Denmark’s leadership rejected Trump’s interpretation of the agreement. Danish Prime Minister Mette Frederiksen stated that Greenland’s sovereignty is not negotiable and that any cooperation with the US would strictly focus on security in the Arctic. Greenland’s government also reinforced that the island is not for sale, reflecting long-standing European concerns over Trump’s earlier remarks.
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