Trump's Greenland ambitions: Details of ‘deal’ emerge as US President rules out force, tariffs

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Shortly after his speech at the World Economic Forum (WEF) in Davos, where he softened his stance and signalled his openness to negotiations, Trump said that he had met NATO Secretary General Mark Rutte and chalked out a 'framework for a future deal'.

US President Donald Trump attends a reception with business leaders during the 56th annual World Economic Forum (WEF), in Davos, Switzerland, January 21, 2026.
US President Donald Trump attends a reception with business leaders during the 56th annual World Economic Forum (WEF), in Davos, Switzerland, January 21, 2026.(REUTERS)

US President Donald Trump on Wednesday took a U-turn on his threats to impose tariffs on European nations to pressurize them into giving up Greenland and ruled out the use of force to seize the Arctic island, suggesting instead that a deal was in sight over the dispute.

Shortly after his speech at the World Economic Forum (WEF) in Davos, where he softened his stance and signalled his openness to negotiations, Trump said that he had met NATO Secretary General Mark Rutte and chalked out a "framework for a future deal".

"Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region. This solution, if consummated, will be a great one for the United States of America, and all NATO Nations," Trump wrote in a post on his Truth Social platform.

"Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress," the US President added, saying that Vice President J D Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and other top officials of his administration would be handling the negotiations.

While the US President did not offer more details on said "deal" on his post, he later gave an interview to CNBC wherein he furnished brief but crucial details on his "concept of a deal" with NATO.

Details about Trump's ‘deal’ for Greenland:

- Trump said that the deal he reached with NATO on Greenland involves access to mineral rights for the US and its European allies. Greenland ranks eight in the world for reserves of rare earth minerals, which are key resources for the manufacture of electronics, weapons systems, and more.

- The US President also said that parties to the deal would be "involved in the Golden Dome" without specifying whether all NATO members, or just Greenland, would be involved in the project. The Golden Dome project emerged in 2025 after Trump signed an executive order calling for an 'Iron Dome for America', alluding to Israel's short-range missile defence system. However, despite the similarity in names, the Golden Dome project is much larger in scope, and involves the use of a constellation of satellites and space-based interceptors to create a 'shield' against ballistic, hypersonic, and cruise missiles.

- There seems to be no expiry date for said deal. When Trump was asked how long the deal would last, he said, "Forever".

- There also seems to have be a clause that would grant the US sovereignty over not all of Greenland, but some pockets of land on the Arctic Island—The New York Times, citing senior officials familiar with the talks with NATO, reported that such a provision was being considered.

While no other specifics were revealed by Trump or other parties involved, White House spokesperson Anna Kelly said that more details would be revealed "as discussions continue".

Denmark welcomes de-escalation

Denmark, meanwhile, welcomed the de-escalation, with Foreign Minister Lars Løkke Rasmussen saying in a post on X, "The day is ending on a better note than it began."

"We welcome that POTUS has ruled out to take Greenland by force and paused the trade war. Now, let’s sit down and find out how we can address the American security concerns in the Arctic while respecting the red lines of the KoD," he added.

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