Following what he called a “very productive” meeting with Nato Secretary General Mark Rutte, US President Donald Trump announced that the United States has established the framework for a future agreement concerning Greenland and the broader Arctic region.
“This solution, if finalised, will be a great one for the United States of America and all Nato nations,” Trump said on Wednesday, adding that, based on this understanding, he will not impose the tariffs originally scheduled for February 1.
Last week, Trump had threatened to target eight European countries, including Norway, Denmark and Sweden, that opposed his efforts to acquire Greenland or had deployed military contingents to the island.
The plan was structured as a “stepped” approach, designed to increase pressure over time if no agreement was reached: a 10 per cent tariff on all goods from the targeted countries was to take effect on February 1, rising to 25 per cent starting June 1.
On Wednesday, Trump noted that further discussions are under way regarding the Golden Dome, the administration’s proposed multilayered missile defence system, specifically in relation to Greenland’s strategic geography, according to a social media post.
US Vice-President J.D. Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and other officials will lead negotiations as necessary.
The announcement comes just hours after Trump’s speech at the World Economic Forum’s annual meeting in the Swiss town of Davos, where he said he would not deploy US military might to acquire Greenland as tensions mounted over his repeated threats to acquire the world’s largest island, by force if necessary.
Trump slams Nato, Europe in WEF speech at Davos
Wednesday saw Trump’s first in-person attendance at the Davos forum since 2020. A rare electrical fault on the US presidential aircraft, now more than 30 years old, had caused a several-hour delay before he resumed the trip aboard an Air Force C-32.
His much-anticipated appearance at the event turned the normally cosy gathering of billionaires and elite pundits into one of the world’s hottest geopolitical tickets.
But Trump left little doubt he still had his eye on “our big piece of ice”, which he said the US needed for national security and rare earth deposits.
“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,” he said. “All the United States is asking for is a place called Greenland.”
Trump’s ambition to acquire Greenland from Denmark has intensified since the US raided Venezuela earlier this month. He had also threatened to impose new tariffs on European countries that oppose his move.
In a meandering 70-minute speech, Trump also slammed Nato for “unfairly” treating the US, called Europe “not even recognisable” and touted the US economy – as he described it, the “greatest that we’ve ever had” – as a manifestation of his strong leadership.
On other fronts, he spoke about how the US is beating China in AI and how the two are in competition for cryptocurrency prowess.
Trump praises ‘very smart’ China, boasts ‘close relationship’ with Xi
Trump clearly appeared to enjoy the world watching him as he aired grievances, took victory laps and aired his opinions on issues ranging from the consequential to the trivial.
The US economy is so attractive under his leadership and his tariff policy so effective, he said, that Chinese companies encouraged by President Xi Jinping are rushing to invest, along with Japan, Mexico and Canada.
“That’s never been done by any country at any time, not even close,” he said, adding: “I’ve always had a very good relationship with President Xi of China. He’s an incredible man.”
Trump cautioned about the potential dangers of unchecked artificial intelligence, while highlighting its benefits and framing the US as the global leader. “We’re leading the world in AI by a lot,” he said. “We’re leading China by a lot. I think President Xi respects what we’ve done.”
The 79-year-old president returned to several recurring themes throughout his Davos speech. He criticised wind energy policies, claiming they harmed the environment and weakened economies, while arguing that China profits from selling wind turbines it barely uses.
“China is very smart. They make them. They sell them for a fortune,” he said. “They sell them to the stupid people that buy them, but they don’t use them themselves.”
The mercurial leader claimed he had stopped referring to the pandemic as the “China virus” at Xi’s request to avoid conflict, and said he was warned of “something really bad happening in China”, claiming satellite images showed body bags in Wuhan without explanation.
Anger from EU leaders over Trump’s pressure to let US take Greenland
White House pressure over Greenland has drawn criticism from European leaders, who are concerned about the future of the post-war world order and the rising tensions in the transatlantic alliance.
French President Emmanuel Macron used his Davos speech on Tuesday to challenge the US position, saying Europe would not “passively accept the law of the strongest” and “we do prefer respect to bullies”.
Trump gave relatively short shrift to the Ukraine-Russia conflict, citing it as one of the few wars he has not halted in his quest for a Nobel Peace Prize, calling it a “bloodbath”.
Both sides should strike a deal to save thousands of lives, he said, adding that it will be “stupid” for them not to agree to a peace deal.
In typical fashion, Trump went off script repeatedly, riffing on the lawns in Washington, restaurants in Memphis, how US cities will soon have “no crime” and questioned the IQ of Somalis.
He also praised Swiss watches but slammed Switzerland’s trade deficit, and said his tariffs ultimately benefited the WEF host. “Without us, it’s not Switzerland any more,” he said.
But the main global focus for much of the audience was on Greenland and whether his aggressive interpretation of US power would lead to conflict.
European Commission President Ursula von der Leyen had taken a more moderate tone than Macron in her Davos speech a day earlier. But she was firm in her opposition to Trump’s tactics, calling the tariff threat a “mistake, especially between long-standing allies”.
She also underscored the need “to build a new form of European independence” in the face of geopolitical shocks.
China calls for ‘bridges, not walls’ in response to Trump’s demands
Also on Tuesday, Danish Prime Minister Mette Frederiksen told lawmakers that Denmark, the nation at the centre of the Greenland dispute, was “being threatened by our closest ally”. Denmark has asked Nato to establish a permanent presence in Greenland.
Chinese Vice-Premier He Lifeng called for “building bridges, not walls”, and firmly supported free trade and multilateralism.
China’s consistent advocacy for multilateralism as “the right way to keep the international order stable” stands in sharp relief to the “America first” approach, with some analysts suggesting that Trump’s policies may bring Europe and China closer together.
Meanwhile, addressing the conflict in Gaza, Trump has invited dozens of world leaders to join the “Board of Peace” initiative as part of his efforts to push forward his 20-point plan.
The board will be chaired by Trump and was originally conceived to oversee the rebuilding of the war-torn territory, but a draft charter sent out last week to prospective members suggested its role could be expanded to other conflicts.
Beijing, while confirming receipt of the invitation, has not announced its decision and explicitly disagrees with the idea of the board supplanting the United Nations. -- SOUTH CHINA MORNING POST
