President Donald Trump has announced that he’s reached a preliminary framework agreement with NATO Secretary General Mark Rutte regarding Greenland, a development he said will pause a looming round of punitive tariffs on European nations.
In a post on Truth Social, Trump said the discussions produced a framework for a future deal covering Greenland and the broader Arctic region.
The development prompted the president to cancel tariffs that were set to take effect on February 1.
“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.
“This solution, if consummated, will be a great one for the United States of America and all NATO Nations.
“Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”
Trump added that additional talks are underway regarding what he described as “The Golden Dome” and Greenland’s role in U.S. and allied security planning.
He said Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff will lead negotiations and report directly to him.
Markets reacted immediately, rebounding within minutes of Trump’s announcement after days of volatility tied to rising transatlantic tensions.
A Sharp Turn in the Greenland Standoff
While details of the framework remain undisclosed, the announcement marks a significant shift in Trump’s long-running push to secure Greenland.
The island nation is currently governed by Denmark, a NATO ally.
In recent weeks, the administration openly discussed acquiring the strategically critical Arctic island, citing national security concerns tied to Chinese and Russian activity in the region.
European leaders and Greenland officials publicly rejected the idea, insisting the territory is not for sale.
Several NATO countries also briefly increased their military presence near the island.
Trump responded over the weekend by threatening sweeping tariffs on Europe, starting at 10% and rising to 25% by June, a move that heightened tensions across the alliance.
Earlier Wednesday, speaking at the World Economic Forum in Davos, Switzerland, Trump reiterated that U.S. control over Greenland is vital to national security but said he would not use military force to obtain the territory.
Stocks, which had slid amid the escalating dispute, surged following Trump’s announcement, underscoring investor confidence in a negotiated outcome rather than a prolonged trade or diplomatic conflict.
While the contours of the deal remain unclear, the White House framed the development as a strategic win.
The news is easing tensions with Europe while keeping Greenland and the Arctic squarely at the center of U.S. security planning.
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