Trump announces 'framework of future deal' for Greenland reached, drops tariff threat against European countries

US President Donald Trump has claimed the "framework of a future deal" on Greenland has been reached, and dropped his latest tariff threat over his mooted takeover of the island.

"This solution, if consummated, will be a great one for the United States of America, and all NATO Nations," he wrote on Truth Social.

He also announced that due to this understanding, he would not impose the threatened tariffs previously announced for European allies from February 1.

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"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," he said in his post.

"Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st."

This would have taken the form of 10 per cent import tariffs on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland.

Danish Foreign Minister Lars Løkke Rasmussen said he welcomed Trump ruling out taking "Greenland by force" and pausing "the trade war with Europe."

"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 Kingdom of Denmark," he said in a statement.

While details of the "framework" were scant, Trump said other talks were being had regarding his planned "Golden Dome" missile defence system as it pertained to Greenland.

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He also said the deal would cover the future of "the entire Arctic Region".

"Further information will be made available as discussions progress," Trump wrote.

"Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others, as needed, will be responsible for the negotiations – They will report directly to me."

Trade war off the table?

Last weekend, Trump announced 10 per cent tariffs would apply on goods imported to the US from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, on the basis of their opposition to US control of Greenland.

In return, European Commission President Ursula Von Der Leyen said Europe's response would be "unflinching, united and proportional".

And French President Emmanuel Macron had proposed the possibility of Europe's anti-coercion law, colloquially known as the "trade bazooka".

If activated – which it never has been – it would allow Europe to sanction individuals or institutions perceived to be putting undue pressure on the EU.

But the prospect of a US-EU trade war appears off the table for the moment.

Trump's online announcement came just hours after Trump's speech at the World Economic Forum in Davos, Switzerland, in which the US president said he would not use the military to effect a Greenland takeover, after leaving that option open for the first year of his second term.

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"That's probably the biggest statement I made, because people thought I would use force," Trump said overnight.

"I don't have to use force. I don't want to use force. I won't use force. All the United States is asking for is a place called Greenland."

The acquisition of Greenland for the US had been an on-and-off headline-grabbing priority during Trump's second presidency, but rhetoric ramped up dramatically in recent weeks after the brazenly successful US kidnapping of Venezuelan president Nicolas Maduro to stand trial in the US earlier this month.

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Trump has claimed that US possession of Greenland is necessary for national and global security, and that Denmark is unable to effectively defend the semi-autonomous island.

The US currently operates one military base on Greenland, but under a decades-old agreement with Denmark, has broad latitude to operate military in the territory.

Danish Prime Minister Mette Frederiksen and Greenland Prime Minister Jens-Frederik Nielsen have repeatedly pushed back against Trump's threats, saying the future of Greenland does not lie with the US.

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Other European nations also recently took a stronger stance against the idea, led by French President Emmanuel Macron - which prompted Trump to threaten the aforementioned tariffs last weekend.

The Danish and Greenland leaders do not yet appear to have responded to Trump's latest announcement.

His Truth Social post did not mention them.

With Associated Press.