Topline
President Donald Trump on Wednesday called off his plan to impose new tariffs on eight European countries providing military support to Greenland, saying he’s reached a “framework of a future deal with respect to Greenland”—though it’s unclear if it involves the U.S. acquiring the island.
President Donald Trump speaks during a reception with business leaders on the sidelines of the World Economic Forum (WEF) annual meeting in Davos on January 21, 2026. (Photo by Mandel NGAN / AFP via Getty Images)
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Key Facts
Trump threatened over the weekend to impose a 10% tariff, starting Feb. 1 and increasing to 25% in June, on Denmark and seven other countries providing enhanced security to Greenland in the wake of Trump’s threats to take over the island.
Trump canceled the tariffs in an announcement on Truth Social after meeting with NATO Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland.
When asked by CNN if the deal would include the U.S. taking ownership of Greenland, Trump did not answer directly, but said, “it’s a long-term deal, it’s the ultimate long-term deal, and I think it puts everybody in a really good position especially as it pertains to security and minerals and everything else.”
Trump told CNBC the deal would last “forever.”
Without offering details, Trump said on Truth Social “additional discussions are being held concerning The Golden Dome as it pertains to Greenland” and “further information will be made available as discussions progress.”
Earlier on Wednesday, Trump backed off his threats to use military force to seize control of Greenland, though he reiterated in his speech at Davos his push to acquire the Danish territory, insisting the U.S. was the only country capable of defending it from adversaries such as China and Russia.
What To Watch For
Trump said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and other officials would be involved in negotiations on Greenland.
Tangent
The European Union said Wednesday it would pause implementation of a trade deal reached with the Trump administration last July amid Trump’s new tariff threats. The EU had agreed to a 15% tariff on most goods, down from a steep 30% tariff that was set to take effect in August. It’s unclear if the EU will restart implementation of the trade deal after Trump canceled his latest tariff threat.
Key Background
Trump spoke at Davos on Wednesday after days of lobbing attacks at the U.S.’ European allies over their refusal to support his push to acquire Greenland. World leaders from Canadian Prime Minister Mark Carney to European Commission President Ursula von der Leyen firmly rebuked Trump’s tariff threats in public remarks at Davos prior to his arrival, heightening tensions as Trump landed in Switzerland on Wednesday morning. The tariffs would have applied to Denmark, Sweden, France, Germany, the Netherlands, Finland, Norway and the U.K. In his speech, Trump called for “immediate negotiations” to discuss his push to absorb Greenland and wrongly said the U.S. took control of Greenland during World War II and was “stupid” to give it back to Denmark, accusing the country of being “ungrateful” for U.S. support during the war. The U.S. signed an agreement during World War II to provide military support to Greenland, but it never acquired the Danish territory. Denmark rejected former U.S. President Harry Truman’s $100 million offer to buy the island shortly after the war ended.
Further Reading
Trump Rules Out Using Force To Take Over Greenland In Davos Speech (Forbes)
Europe Halts US Trade Deal Over Trump’s Greenland Threats (Forbes)
Greenland Prime Minister Says Military Invasion ‘Can’t Be Ruled Out’ (Forbes)
Source: https://www.forbes.com/sites/saradorn/2026/01/21/trump-says-agreement-reached-on-greenland-cancels-new-tariffs-on-europe/
