In a significant diplomatic reversal, President Donald Trump has withdrawn his threat to impose tariffs on European nations and seize Greenland from Denmark, instead announcing a new framework for Arctic cooperation following discussions with NATO Secretary General Mark Rutte at the World Economic Forum in Davos.
The breakthrough came after weeks of escalating tensions that saw Trump threaten to levy tariffs against eight European countries beginning February 1 unless Denmark ceded control of the autonomous Arctic territory. The president’s abrupt policy shift emerged from substantive talks focused on regional security concerns rather than territorial acquisition.
According to officials familiar with the negotiations, the United States and Denmark will renegotiate their 1951 defense pact concerning Greenland, which already grants Washington considerable military flexibility on the island. The existing agreement, last updated in 2004, essentially permits the U.S. to expand its military presence provided it notifies Danish and Greenlandic authorities in advance.
The current American military footprint in Greenland centers on the strategically vital Pituffik Space Base in the northwest, which serves as a critical component of the U.S. missile defense system.
Secretary General Rutte characterized the discussions as productive, noting that one key outcome was establishing how NATO members with Arctic territories—seven nations in total—could collectively enhance regional security. “We discussed how to ensure that the Chinese and Russians will not gain access to the Greenland economy or military infrastructure,” Rutte stated, emphasizing the alliance’s shared interest in limiting non-Arctic powers’ influence in the region.
Both American and European officials explicitly denied that sovereignty arrangements for U.S. bases in Greenland were discussed during the Rutte-Trump meeting. Danish Prime Minister Mette Frederiksen reinforced this position, confirming she had consulted with Rutte both before and after his discussion with Trump and stating unequivocally that “no negotiations were held yesterday with NATO about our sovereignty.”