Trump cancels tariff threat in his push for US control of Greenland

DAVOS, Switzerland — President Donald Trump on Wednesday scrapped the tariffs that he threatened to impose on eight European nations to press for U.S. control over Greenland, after insisting he wanted to get the island "including right, title and ownership."

In a social media post, Trump said he agreed with the head of NATO on a "framework of a future deal" on Arctic security, potentially defusing tension that had far-reaching geopolitical implications.

He said "additional discussions" on Greenland would be held concerning the Golden Dome missile defense program, a multilayered $175 billion system that will put U.S. weapons in space.

Trump offered few details, saying they were still being worked out. One idea NATO members discussed as part of a compromise with Trump was that Denmark and the alliance would work with the U.S. to build more U.S. military bases on Greenland.

That's according to a European official familiar with the matter but not authorized to comment publicly. The official, who spoke on condition of anonymity, said it was not immediately clear if that idea was included in the framework Trump announced.

The Republican president threatened tariffs before only to back away. In April, after first saying he would slap massive import levies on nations from around the world, which prompted a sharp negative market reaction, Trump eased off.

His change of heart this time came only after he used his speech at the World Economic Forum in the Swiss Alps to focus on Greenland and threaten to upend NATO.

In his address, Trump said he asks for territory that is "cold and poorly located," argued the U.S. effectively saved Europe during World War II and declared of NATO: "It's a very small ask compared to what we have given them for many, many decades."

"We probably won't get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But I won't do that, OK?" Trump said.

Trump previously said while the U.S. would defend NATO, he wasn't convinced the alliance will back up Washington if needed, and suggested that was at least part of the reason for his aggressive stance toward Greenland.

That prompted NATO Secretary General Mark Rutte, in a post-speech event with Trump, to say the alliance would stand with the U.S. if it is attacked. Trump's post canceling the tariffs came a short time later.

Danish Foreign Minister Lars Lokke 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.

Trump argues that the U.S. needs Greenland for national security and to counter threats from Russia and China in the Arctic region, though America already has a large military base there.

He threatened to impose steep U.S. import taxes on Denmark and seven other allies unless they negotiate a transfer of the semi-autonomous territory. The tariffs were to have started at 10% next month and climb to 25% in June.

His threats appeared on the verge of rupturing NATO, which was founded by leading European nations, the U.S. and Canada to counter the Soviet Union.

The alliance's other members were steadfast in saying Greenland is not for sale and cannot be wrested from Denmark, while angrily rejecting Trump's promised tariffs.

A Danish government official told The Associated Press after Trump's speech that Copenhagen was ready to discuss U.S. security concerns. But the official, who was not authorized to comment publicly and spoke on condition of anonymity, underscored the government's position that "red lines"— namely Denmark's sovereignty — must be respected.

It was not immediately clear how Trump's canceling of tariffs might change such calculations.

Meanwhile, Greenland's government responded by telling its citizens to be prepared. It has published a handbook in English and Greenlandic on what to do in a crisis that urges residents to ensure they have sufficient food, water, fuel and supplies at home to survive for five days.

"We just went to the grocery store and bought the supplies," said Tony Jakobsen in Greenland's capital Nuuk said, showing off the contents of bags that included candles, snacks and toilet paper.

Jakobsen said he thought Trump's rhetoric towards Greenland was "just threats … but it's better to be ready than not ready."

Trump, meanwhile, urged Denmark and the rest of NATO to stand aside, adding a warning. "We want a piece of ice for world protection, and they won't give it," he said. "You can say yes, and we will be very appreciative. Or you can say no, and we will remember."

He also called for opening "immediate negotiations" for the U.S. to acquire Greenland.

In subsequent comments to reporters, he declined to name a price that might be paid, saying only, "There's a bigger price, and that's the price of safety and security and national security and international security."

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Trump suggests Europe is fizzling while U.S. booms

Danish Foreign Minister Lars Løkke Rasmussen said he was encouraged by Trump's comment about not using U.S. military force but called other parts of the speech "a way of thinking about territorial integrity that does not match the institutions we have."

"Greenland is part of NATO. Denmark is part of NATO, and we can exercise our sovereignty in Greenland," Lokke Rasmussen said.

In his remarks, Trump also argued that the U.S. is booming and its economy is strong, in sharp contrast to Europe.

"I want to see Europe go good, but it's not heading in the right direction," he said, and noted, "We want strong allies, not seriously weakened ones." He said of European economies, "You all follow us down, and you follow us up."

His arrival was delayed after a minor electrical problem on Air Force One forced a return to Washington to switch aircraft. As Trump's motorcade headed down a narrow road to the speech site, onlookers — including some skiers — lined the route. Some made obscene gestures, and one held up a paper cursing the president.

Billionaires and top executives packed inside the forum's Congress Hall, which held around 1,000, for Trump's keynote address. The space was filled to standing room only. Attendees used headsets to listen in six languages besides English, and the reaction was mostly polite applause.

Afterward, Trump met with the leaders of Poland, Belgium and Egypt and again repeated that the U.S. would not be invading Greenland.

"Military is not on the table," Trump said, suggesting that the parties involved would use better judgment.

Trump had threatened to impose steep U.S. import taxes on Denmark and seven other allies unless they negotiate a transfer of the semiautonomous territory — some European say they won't do. Trump said the tariffs would start at 10% next month and climb to 25% in June.

British Prime Minister Keir Starmer vowed during his weekly questioning in the House of Commons, "Britain will not yield on our principles and values about the future of Greenland under threats of tariffs, and that is my clear position."

European Commission President Ursula von der Leyen warned that if Trump moved forward with the tariffs, the bloc's response "will be unflinching, united and proportional."

Experts and economists warned that Trump's Greenland tariff threat could disrupt the U.S. economy if it blows up the trade truce reached last summer between the U.S. and the EU. But the U.S. stock market largely recovered on Wednesday from its worst day since October after Trump's talk of Greenland-related tariffs spooked investors.

Trump's housing plan overshadowed

Trump's was supposed to focus on how to lower U.S. housing prices — part of a larger effort to bring down the cost of living, which could prove a liability for the president's party of November's midterm elections.

Greenland instead carried the day, with Trump lashing out at Denmark for being "ungrateful" for the U.S. protection of the Arctic island during the Second World War. He also mistakenly referred to Iceland, mixing up that country with Greenland four times during his speech and for the fifth time since Tuesday.

"This enormous unsecured island is actually part of North America," Trump said. "That's our territory."

When he finally did mention housing in his speech, Trump suggested he did not support a measure to encourage affordability. He said bringing down rising home prices hurts property values and makes homeowners who once felt wealthy because of the equity in their houses feel poorer.

'You have to be prepared for almost anything'

In Nuuk, resident Johnny Hedemann said it was "insulting" that Trump "talks about the Greenlandic people and the Greenlandic nation as just an ice cube." He spoke while heading out to buy a camping stove and instant mashed potatoes.

"Living in this nature, you have to be prepared for almost anything. And now there's another threat — and that's Trump," Hedemann said.

He added: "With this lunatic, you don't know what's going to happen tomorrow. He can make things very bad for everyone."

Photos of daily life in Greenland as Trump pushes to take it over