United States President Donald Trump said today that he had reached a framework of a deal that satisfies him on Greenland, as he backed down both on threats to seize the island by force from Denmark and on imposing tariffs against European allies.

Trump said the deal was long-term but offered few details and was conspicuously silent on whether the deal would mean US control over the Arctic island, which he has repeatedly demanded.

Trump made the startling turnaround after talks with Nato Secretary-General Mark Rutte at the World Economic Forum in the Swiss ski resort of Davos.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region”, Trump said in a post on his Truth Social platform.

Trump said he would therefore scrap tariffs of up to 25% that he had vowed days ago to slap starting February 1 on Denmark as well as close European allies that have sent troops to Greenland in solidarity, including Britain, France and Germany.

He later told reporters from outlets including AFP that the deal “gets everything we wanted” and will be in force “forever”.

Asked if the US would gain sovereignty over the vast but sparsely populated island, Trump hesitated and then said: “It’s the ultimate long-term deal”.

“I think it puts everybody in a really good position, especially as it pertains to security, and minerals and everything else,” Trump said.

“It’s a deal that people jumped at, really fantastic for the USA, gets everything we wanted.”

Later, Rutte said that he had not discussed the key issue of Danish sovereignty over Greenland in his meeting with Trump.

Rutte, speaking in a televised interview with Fox News’ Bret Baier, offered few details about the supposed “framework”.

“We have a good agreement to really start working on these issues,” Rutte said, echoing comments earlier to AFP that much work remained to reach an actual deal.

“That means that we both agreed, when you look at Nato and what Nato collectively can do to make sure that the whole Arctic region is safe,” he said.

Mark Rutte, Secretary-General of the North Atlantic Treaty Organisation. Photo / Getty Images

Asked if Greenland would remain a part of the Kingdom of Denmark under the deal, Rutte said: “That issue did not come up anymore in my conversations tonight with the President”.

He added: “He’s very much focused on what do we need to do to make sure that that huge Arctic region, where change is taking place at the moment, where the Chinese and Russians are more and more active, how we can protect that. That was really the focus our discussions.”

Nato spokesperson Allison Hart said that allies would discuss the framework which addresses Trump’s claims that the island is not protected from Russia or China.

“Negotiations between Denmark, Greenland, and the US will go forward aimed at ensuring that Russia and China never gain a foothold - economically or militarily - in Greenland,” she said.

Relief in Europe

Trump’s threats had triggered one of the biggest transatlantic crises in decades, with warnings that he could single-handedly destroy Nato through aggression against a fellow member.

His apparent climbdown eased jitters in Denmark, long a steadfast US ally where Trump’s bellicose language has triggered shock and feelings of betrayal.

“Trump said that he will pause the trade war, he says, ‘I will not attack Greenland’. These are positive messages,” Foreign Minister Lars Lokke Rasmussen told Danish public television DR.

Dutch Prime Minister Dick Schoof said that the US and Europe were “now on the path to de-escalation”.

Trump has repeatedly said that the US, the key force in Nato, deserves Greenland as it would be forced to defend the island against Russia or China, although neither country holds any claim to the island.

The issue dominated Trump’s first address to the World Economic Forum in six years, in which he slammed Denmark as “ungrateful” for refusing to give up the Arctic island.

But he appeared to take the threat of military action off the table.

“I don’t want to use force. I won’t use force. All the US is asking for is a place called Greenland,” Trump said.

The shift in tone also brought relief to global markets, with Wall Street’s key indices climbing.

Facing down Trump

Before Trump’s apparent turnaround, Greenland’s Government unveiled a new brochure offering advice to the population in the event of a “crisis” in the territory, saying it was an “insurance policy”.

Trump repeatedly referenced Greenland in his speech, although he mistakenly called it Iceland several times.

The US President also lambasted Europe on a number of fronts from security to tariffs and the economy, saying it was “not heading in the right direction”.

Europe and Canada had earlier closed ranks against what they viewed as a threat to the US-led global order from Trump’s territorial ambitions.

Canada’s Prime Minister Mark Carney won a standing ovation at Davos yesterday when he warned of a “rupture” to the US-led system. French President Emmanuel Macron for his part said Europe would not be bullied.

Trump renewed his attacks on the two leaders, mocking Macron in particular for wearing sunglasses at Davos, which the French President said was because of an eye condition.

In remarks that veered from topic to topic, Trump also expressed hope of ending the Ukraine war soon, saying he expected to meet President Volodymyr Zelenskyy in Davos.

- Agence France-Presse