On January 21, 2026, President Donald Trump withdrew his threat to impose 10%–25% tariffs on several European nations (Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland) after establishing a
"framework of a future deal" with NATO regarding Greenland and the Arctic region. The agreement, reached with NATO Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland, was aimed at addressing U.S. national security interests in the Arctic, specifically concerning the "Golden Dome" missile defense system.
Key Aspects of the "Greenland Framework" and Withdrawal:
- The Framework's Goal: The framework focuses on Arctic security, with the U.S. seeking to bolster its military presence in the region to counter threats from Russia and China.
- Mineral Rights & Defense: Reports indicate the framework includes discussions on mineral rights in Greenland and incorporating the island into the U.S. "Golden Dome" missile shield.
- No Force: Trump announced he would not use military force to seize Greenland, a move that helped de-escalate the situation, according to his speech in Davos.
- Negotiation over Tariffs: Following a meeting with NATO's Rutte, Trump determined that a "framework" was in place, making the scheduled Feb. 1 tariffs unnecessary.
- Alternative to Full Ownership: While Trump previously demanded "right, title, and ownership" of Greenland, the framework suggests a deal that may allow for U.S. strategic control or access, short of a full territorial purchase.
The tariff threats had previously prompted the European Parliament to freeze a separate US trade deal and prepare retaliatory measures. Following the announcement of the framework, U.S. stock markets experienced a rally.
