Trump drops tariff threat on EU countries after striking framework for a deal over Greenland in Davos

US President Donald Trump announced on Wednesday that he had "formed the framework" of a future deal over Greenland in a meeting with the NATO secretary general in Davos, Switzerland and would call off the threat of tariffs on eight European countries that had opposed his quest to acquire the Danish territory.

Trump wrote in a post on Truth Social on Wednesday evening that he and NATO Secretary General Mark Rutte had "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 States of America, and all NATO Nations."

After the announcement, the US president told reporters huddled on the sidelines in Davos that the deal gave the US "everything it wanted" on Greenland.

"It's a deal that everybody's very happy with. It's the ultimate long-term deal, and I think it puts everybody in a really good position, especially as it pertains to security and minerals and anything else," he said.

Michael A. Allen, professor and political science program lead at the School of Public Service Boise State University in Idaho, told China Daily, "The US can … increase its military presence in Greenland and work with NATO partners to achieve its goals."

Further details were limited immediately after the announcement.

But the planned 10 percent US tariff on goods from the UK, Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland due to start Feb 1 were dropped.

So too was the threat of an increase in tariffs to 25 percent from June 1, if no arrangement was made for the US to acquire Greenland.

Trump told CNBC that the deal had "no time limit" and that it would last "forever".

He also hinted that it could involve the US having rights to minerals and help with the Golden Dome Missile Defense system.

The news of the surprising breakthrough was met with widespread relief by European nations, many of whom had openly derided Trump's threats to take over Greenland. It sent shockwaves throughout the EU as Denmark is a member of NATO, the defense alliance founded in 1949.

Danish Foreign Minister Lars Lokke Rasmussen said in a statement following Trump's announcement: "The day is ending on a better note than it began. Now, let's sit down and find out how we can address the American security concerns in the Arctic while respecting the red lines of the Kingdom of Denmark."

US Secretary of State Marco Rubio and Special Envoy Steve Witkoff will "report" to Trump on the progress of negotiations.

Sources told The New York Times that members of NATO met with top military brass from all of the alliance's states.

They said that one possibility in the fine print of the agreement was that Denmark may have to give up, some, but not all, of their territory's land to the US.

This would allow the US to build military bases, but nothing has been officially confirmed yet.

Trump notably did not say if the US would own Greenland outright when asked by reporters.

In an earlier speech before the World Economic Forum in Davos, the US president ruled out the use of force to acquire Greenland, alleviating fears among many European allies.

"We probably won't get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable," Trump said. "But I won't do that. That's probably the biggest statement, because people thought I would use force. I don't have to use force. I don't want to use force. I won't use force. All the United States is asking for is a place called Greenland."

He also reminded the EU of prior US tariffs on their goods and derided their dependence on the US for security, dubbing it a contrast to their former glory. "Without us, most of the countries don't even work," Trump said.