Trump drops 500% tariff threat, unveils Greenland ‘framework deal’ with NATO | Details inside

Trump drops 500% tariff threat, unveils Greenland ‘framework deal’ with NATO | Details inside

US President Donald Trump, Greenland Photograph: (WION Web Desk)

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After talks with NATO chief Mark Rutte, US President Donald Trump has hit pause on his hardline Greenland push and is now pitching a deal. Here's what we know about Trump's Greenland framework deal.

US President Donald Trump on Wednesday (Jan 21) shifted course on Greenland. The POTUS, who had been pushing a hardline approach to acquire Greenland, used the stage at the World Economic Forum in Davos to hint at a softer approach on Greenland. He said that the tariffs he had threatened to slap on European countries are now off the table, and so is the talk of force. In its place, Trump is offering a deal. Here's what we know about Trump's Greenland framework deal.

Framework deal for Greenland

After meeting NATO Secretary General Mark Rutte, the US president said the two had drawn up what he called a "framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region".

"This solution, if consummated, will be a great one for the United States of America and all NATO Nations," Trump wrote on Truth Social. On the back of that understanding, he said, the tariffs planned for February 1 would not go ahead. "Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress," he said.

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Vice President J D Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff, he added, would now take the talks forward.

Also read | Sometimes people 'need a dictator’: Trump stuns Davos after Greenland rant

A complex deal is in works

While Trump did not spell out much in his initial post, later, in an interview with CNBC, he gave a clearer picture of what he calls his "concept of a deal" with NATO.

"We have a concept of a deal. I think it’s going to be a very good deal for the United States, also for them," said Trump. The POTUS noted that the deal was "a little bit complex," but said that they will "explain it down the line."

Trump wants Greenland's minerals?

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At the core of Trump's framework for Greenland is access to the island's mineral wealth. The island sits on large reserves of rare earth elements, materials that are critical for everything from smartphones to missile systems. Trump said the US and its European allies would gain rights to those resources under the arrangement.

Also read | Davos 2026: Key takeaways from Trump's angry, Greenland obsessed speech

He also talked of the Golden Dome, a project launched by his executive order in 2025. It is Trump's vision of a missile shield for America, built using satellites and space-based interceptors. He suggested that parties to the framework would also be "involved in the Golden Dome" system, though he did not say if he just meant Greenland or NATO, and neither did he say exactly how.

"They’re going to be involved in the Golden Dome, and they’re going to be involved in mineral rights, and so are we,” Trump said.

How long will the US-Greenland deal last?

When asked how long this new arrangement would last, Trump did not hesitate. "Forever," he said.

US to control Greenland?

Reports suggest that there's a clause that would grant the US sovereignty to some parts of the frozen island. The New York Times, citing senior officials familiar with the talks, reported that the framework being discussed could include a clause giving the United States sovereignty over parts of certain pockets of Greenland, and not the whole island.

White House Spokesperson Anna Kelly when asked about this, said, details would come "as discussions continue."

Copenhagen exhales, welcomes de-escalation

In Denmark, the reaction was cautious but relieved after weeks of tensions. Foreign Minister Lars Løkke Rasmussen on X said that the day was "ending on a better note than it began." He welcomed Trump’s decision to rule out using force and to pause the "trade war".

"Now, let’s sit down and find out how we can address the American security concerns in the Arctic," he wrote, "while respecting the red lines of the KoD".

About the Author

Moohita Kaur Garg is a journalist and Senior Sub-Editor at WION News, specialising in the volatile intersections of global security, defense technology, and South Asian geopolitics...Read More