U.S. President Donald Trump on Wednesday, January 20, 2026, abruptly canceled a threatened round of tariffs against European allies after announcing that he and NATO leaders had agreed to a “framework of a future deal” focused on Arctic security.

The announcement eases — at least temporarily — a brewing transatlantic crisis over Greenland.

Speaking at the World Economic Forum in Davos, Trump said the decision to back off proposed tariffs targeting Denmark and other NATO members followed discussions on Arctic cooperation.

Earlier in the day, he had reiterated his controversial claim that the United States should ultimately gain control of Greenland, a semi-autonomous Danish territory, arguing that it is strategically vital to counter Russian and Chinese activity in the Arctic.

The reversal came just hours after Trump declared that he wanted “right, title and ownership” of Greenland, while insisting he would not use military force to obtain it. His remarks had rattled European capitals and raised fears of a serious rupture within NATO, one of the world’s most enduring military alliances.

“We probably won’t get anything unless I decide to use excessive strength and force — where we would be frankly unstoppable,” Trump said during his Davos address, before adding, “But I won’t do that. I don’t want to use force.”

NATO Tensions and Arctic Stakes

Trump described his demand for Greenland as a modest request in light of what he described as decades of U.S. security guarantees for Europe, particularly during World War II and throughout the Cold War. He argued that Washington needs greater control in the Arctic to ensure global security, despite the United States already operating a major military base on the island.

NATO officials have repeatedly stressed that Greenland is not for sale and remains under Danish sovereignty. Denmark, a founding NATO member, has maintained that any discussion of Arctic security must respect its territorial integrity.

Danish Foreign Minister Lars Løkke Rasmussen welcomed Trump’s assurance that military force was “not on the table,” but criticized the broader tone of the speech. “This way of thinking about territorial integrity does not match the institutions we have,” he said, underscoring that both Denmark and Greenland are part of NATO.

A Danish government official, speaking anonymously, confirmed that Copenhagen is open to talks on U.S. security concerns but emphasized that Denmark’s sovereignty over Greenland remains a red line.

Greenland Reacts

In Greenland itself, Trump’s rhetoric has prompted unease. Authorities recently issued a public crisis-preparedness handbook advising residents to stockpile essentials such as food, water and fuel for at least five days.

“We just went to the grocery store and bought supplies,” said Tony Jakobsen, a resident of Nuuk, Greenland’s capital. “It’s better to be ready than not ready.”

Others reacted more sharply. Johnny Hedemann, another Nuuk resident, described Trump’s comments as “insulting,” accusing the U.S. president of reducing Greenland and its people to “just an ice cube.”

“Living in this nature, you have to be prepared for almost anything,” Hedemann said. “And now there’s another threat — and that’s Trump.”

Tariffs Paused, Uncertainty Remains

Before Wednesday’s announcement, Trump had threatened to impose tariffs starting at 10% and rising to 25% by mid-year on imports from Denmark and several other European allies unless they negotiated over Greenland’s future. European leaders warned that such measures would provoke a unified and proportional response from the European Union.

British Prime Minister Keir Starmer said the United Kingdom would not “yield on our principles and values” regarding Greenland under tariff threats, while European Commission President Ursula von der Leyen cautioned that any U.S. trade action would be met firmly.

Economists had warned that a tariff escalation could destabilize the fragile U.S.–EU trade truce reached last year. Although global markets initially wobbled on Trump’s Greenland remarks, U.S. stocks recovered later on Wednesday following news of the tariff cancellation.

Davos Speech Overshadowed

Trump’s Davos appearance was originally billed as a platform to outline his plans to address rising housing costs in the United States — a key domestic issue ahead of November’s midterm elections. Instead, Greenland dominated the discussion, with the president sharply criticizing Denmark and repeatedly suggesting that Europe’s economy is weakening while the U.S. continues to boom.

“We want strong allies, not seriously weakened ones,” Trump said, claiming European economies tend to “follow us down, and you follow us up.”

Despite the dramatic rhetoric, Trump later reiterated to reporters that the United States would not invade Greenland. “Military is not on the table,” he said, adding that negotiations would rely on “better judgment.”

For now, the announced NATO framework appears to have cooled immediate tensions. Yet Trump’s insistence that the United States “will remember” Europe’s response leaves open the possibility that Greenland — and the Arctic’s growing geopolitical importance — could again become a flashpoint in U.S.-European relations.