U.S. President Donald Trump called off his threat of tariffs on eight European countries, including Denmark, announced last Saturday (January 17, 2026), to compel them to transfer the semi-autonomous Danish territory of Greenland to the U.S.
Mr. Trump had said he would acquire the strategically located Arctic island “one way or another”. The countries in question had each sent a small number of troops to Greenland earlier this month, following Mr. Trump’s recent threats.
Mr. Trump announced that he was cancelling the tariffs on Wednesday (January 21, 2026) evening, on his Truth Social media platform, after what he called a “very productive” meeting with Mark Rutte, the Secretary General of NATO (the North Atlantic Treaty Organization) in Davos, Switzerland. The U.S. President is attending the World Economic Forum in the alpine resort town.
Mr. Trump said the U.S. and NATO had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region” and that he would not be imposing the tariffs set to begin February 1 based on the understanding reached. The tariffs were set to kick off at a rate of 10%, increasing to 25% in June 2026.
“Additional discussions are being held concerning the Golden Dome as it pertains to Greenland,” said Mr. Trump, referring to a multi-layered missile and air defence system he intends to build for the U.S.
Europe on the edge
Just prior to his discussions with Mr. Rutte, the President told a gathering in Davos that he was not going to use force to annex Greenland. Europe has been on edge over Mr. Trump’s aggressive pursuit of the Arctic island, which he claims is required for national and global security. Mr. Trump has suggested that Russia and China pose an imminent threat to Greenland, a claim denied by the Russians.
European leaders, who in general do not share the same risk assessment with the U.S. on Russia and China’s intentions in the Arctic, have tried a mixture of flattery and tough talking in response to Mr. Trump’s threats. The European Parliament suspended the approval of a E.U.-U.S. trade agreement struck in July 2025.
While the terms of the agreed framework on Greenland appear to be under discussion, Mr. Trump said that from the U.S. side, Vice-President J.D. Vance, Secretary of State Marco Rubio, and presidential envoy Steve Witkoff would be among those responsible for the negotiations.
