Trump Softens Stand On Greenland, Backs Off Tariff Threat After Nato Talks

Washington: Hours after he ruled out military action, US President Donald Trump on Wednesday has pulled back from his threat to impose tariffs on European countries over Greenland after talks with Nato Secretary General Mark Rutte on the sidelines of the World Economic Forum.

The sudden change in tone marked a cooling of rhetoric that had sparked concern among US allies and drawn sharp reactions from Denmark, which governs Greenland.

What did Trump say?

Donald Trump in a post on his Truth Social platform said that "the tariffs that had been scheduled to take effect on 1 February would no longer go ahead following discussions with the Nato chief."

"Based upon a very productive meeting that I have had with the Secretary General of Nato, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote.

The US President said the proposed framework would be good for both the US and its Nato allies, and said that's why he decided to drop the tariffs. 

"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," Trump wrote on Truth Social.

Trump said that the talks would be led by Vice President JD Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff, along with other officials as needed, adding that they would report directly to him.

"Further information will be made available as discussions progress. Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others, as needed, will be responsible for the negotiations . They will report directly to me. Thank you for your attention to this matter," he wrote.

"Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the 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… pic.twitter.com/24b99begbb

— The White House (@WhiteHouse) January 21, 2026

What changed after the Nato talks?

According to officials, Trump and the Nato chief spoke about long-term cooperation in the Arctic, security concerns, and economic engagement. Soon after the meeting, the White House signalled that tariff threats tied to Greenland were no longer being pursued.

Trump told reporters that discussions were "productive" and that the US was focused on "working with partners, not against them."

How did Denmark react?

Denmark’s Foreign Minister Lars Lokke Rasmussen welcomed Donald Trump's decision to drop the imposing of tariff plan, which had run counter to the president’s stated ambition for the US to acquire Greenland. 

Rasmussen, while describing the announcement said it is a positive development, and said that "the day is ending on a better note than it began."

Why did Greenland come into focus again?

Greenland, a semi-autonomous Danish territory, has strategic importance due to its location and mineral resources. Trump has repeatedly expressed interest in expanding US influence in the region, at times using unusually blunt language that has unsettled European capitals.

Earlier this week, his remarks triggered speculation about economic pressure tactics, including trade penalties, though no formal proposal was announced.