In a significant diplomatic development at the World Economic Forum in Davos, President Donald Trump announced the suspension of threatened tariffs against eight European nations following the establishment of a preliminary agreement concerning Greenland and Arctic security. The breakthrough came during bilateral discussions with NATO Secretary General Mark Rutte on January 21, 2026.
The agreement, described by Trump as ‘the ultimate long-term deal,’ effectively cancels planned 10% tariffs on goods from the United Kingdom, Denmark, Norway, Sweden, France, Germany, Netherlands, and Finland that were scheduled to commence February 1. Additionally, the administration withdrew the threat of escalating these tariffs to 25% beginning June 1.
While specific details remain limited, the framework reportedly addresses US strategic interests in the Arctic region, including enhanced military presence opportunities and mineral resource access. Trump characterized the arrangement as providing the United States with ‘everything it wanted’ regarding Greenland while creating benefits for all NATO member nations.
Political science expert Professor Michael A. Allen of Boise State University noted the agreement would enable the US to ‘increase its military presence in Greenland and work with NATO partners to achieve its goals.’
European leaders expressed relief at the de-escalation of tensions. Danish Foreign Minister Lars Lokke Rasmussen stated, ‘The day is ending on a better note than it began,’ emphasizing the importance of addressing American security concerns while respecting Denmark’s territorial integrity.
The negotiation process will be overseen by US Secretary of State Marco Rubio and Special Envoy Steve Witkoff, who will report directly to the president. Preliminary discussions suggest the possibility of limited territorial concessions for military infrastructure, though no official confirmation has been provided.
Notably, President Trump explicitly ruled out military force to acquire Greenland during his Davos address, stating: ‘I don’t have to use force. I don’t want to use force. I won’t use force.’