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Trump Backs Down on Greenland Tariff Threats, Hints at Long-Term Deal

U.S. President rules out force, signals agreement to safeguard Arctic interests

U.S. President Donald Trump attends the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 21, 2026. REUTERS/Denis Balibouse
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U.S. President Donald Trump on Wednesday stepped back from threats to impose tariffs as leverage over Greenland, ruling out the use of force and hinting at a potential long-term deal to resolve tensions over the Danish territory.

Speaking from Davos, Switzerland, Trump appeared to dial down weeks of rhetoric that had unsettled NATO allies and risked a global trade confrontation. The president had previously threatened escalating tariffs on exports from eight European countries amid the dispute.

After meeting with NATO Secretary General Mark Rutte at the Swiss Alpine resort, Trump indicated that a deal could satisfy U.S. interests in the strategically important island, home to 57,000 people. He emphasized goals such as establishing a “Golden Dome” missile‑defense system and securing access to critical minerals while preventing Russian and Chinese influence in the Arctic.

“It’s a deal that everybody’s very happy with,” Trump told reporters. “It’s a long-term deal. It’s the ultimate long-term deal. It puts everybody in a really good position, especially as it pertains to security and to minerals. It’s a deal that’s forever.”

Rutte later confirmed that Greenland’s sovereignty with Denmark was not discussed in the talks. “That issue did not come up anymore in my conversations tonight with the president,” Rutte said in an interview on Fox News’ Special Report with Bret Baier. “He (Trump) is very much focused on what do we need to do to make sure that that huge Arctic region—where change is taking place at the moment, where the Chinese and the Russians are more and more active—how we can protect it.”

The development signals a temporary easing of tensions in transatlantic relations and underscores the strategic significance of Greenland in Arctic security and mineral resources.

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Victoria Emeto
the authorVictoria Emeto
A bright and self-driven graduate trainee at AV1 News, she brings fresh energy and curiosity to her role. With a strong academic background in Mass Communication, she has a solid foundation in storytelling, audience engagement, and media ethics. Her passion lies in the evolving media landscape, particularly how emerging technologies are reshaping content creation and distribution. She is already carving a niche for herself as a skilled journalist, honing her reporting, writing, and research abilities through hands-on experience. She actively explores the intersection of digital innovation and traditional journalism.

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