US President Donald Trump. — Reuters
WASHINGTON: President Donald Trump says he will refrain from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland, citing a “framework of a future deal” he says was reached regarding the island.
The decision, which Trump announced on social media, marks a stark reversal for a president who has repeatedly attempted to coerce Europe over Greenland.
It came after a meeting with North Atlantic Treaty Organisation (Nato) secretary general Mark Rutte at the World Economic Forum in Davos, Switzerland.
Still, Trump did not detail the parameters of the so-called “framework” and it was unclear what the agreement entails, especially since Denmark earlier Wednesday ruled out negotiations over ceding the semi-autonomous island to the United States.
“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire arctic region,” Trump posted.
“This solution, if consummated, will be a great one for the United States of America, and all Nato nations.
“Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on Feb 1.”
US stocks jumped on the news that tariffs wouldn’t be implemented, with the S&P 500 and Nasdaq 100 rallying to session highs.
Treasuries extended gains, and the Bloomberg Dollar Index rose to a daily high.
Trump told reporters after his post that he would release the specifics of the agreement shortly.
He declined to answer when asked if it grants US ownership of Greenland, saying “it’s a long-term deal.
“It’s the ultimate long-term deal, and I think it puts everybody in a real good position.”
He said it would last for an “infinite” period of time.
In an interview with CNBC, Trump said he had not spoken directly with officials in Denmark about his “concepts of a plan” for Greenland.
However, he added that he assumed Rutte had briefed leaders there.
He also said the United States would be “involved” in Greenland’s mineral rights, without elaborating.
The United States president said there would be additional discussions on the Golden Dome missile-defence system, which he cited in justifying his pursuit of Greenland.
Vice-president JD Vance, secretary of state Marco Rubio, special envoy Steve Witkoff and “various others” will be responsible for negotiations, Trump added in his post.
Trump’s brinkmanship over Greenland touched off a diplomatic crisis with Europe and spooked financial markets.
A day earlier, stocks and the dollar fell before the president’s climb-down.
The European Parliament froze ratification of the European Union’s trade agreement with the United States in response to Trump’s escalating threats.
Last Saturday, Trump said he would impose tariffs of 10% on goods from eight European countries on Feb 1 unless a deal was reached for the purchase of Greenland, with the rate increasing to 25% on June 1 if an agreement was not made by then.
While the Greenland crisis may be defused for now, the famously mercurial president could spark tensions again in the future.
In a speech at Davos earlier Wednesday, Trump ruled out the use of military force to take control of the island.
But he still used menacing language to describe what would happen if Europe did not meet his demands.
“You can say yes, and we will be very appreciative, or you can say no, and we will remember,” the president said.
He also bristled at comments from Danish Foreign Minister Lars Lokke Rasmussen, who said Wednesday that his nation “will not enter into any negotiations on the basis of giving up fundamental principles.”
“If he wants to tell me, he’ll tell me that to my face,” Trump said of Rasmussen, when asked about them during his meeting with the Nato chief. — Bloomberg
