Tariff threat dropped: Trump and NATO reach “framework” of deal on Greenland

Tariff threat dropped: Trump and NATO reach “framework” of deal on Greenland
U.S. President Donald Trump speaks in Davos, Switzerland, Wednesday, January 21, 2026.
Reuters

President Trump says he has agreed a framework for a Greenland deal with NATO.

Speaking on the sidelines of the World Economic Forum in Davos, Trump said the understanding with NATO prompted him to back away from previously announced punitive tariffs on several European countries, which had been due to take effect on 1 February.

Following Trump’s remarks, financial markets reacted positively, with U.S. stocks rising sharply after news of the tariff reversal.

Trump did not provide details on the scope or substance of the Greenland framework, but said discussions with NATO were continuing. European officials have yet to comment publicly on the announcement.

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