Trump Backs Off Greenland‑Linked Tariffs After Reaching Deal Framework

By: Ebenezer Adu-Gyamfi / Emmanuel Ayiku for GhanaianNewsCanada 21/1/2026

U.S. President Donald Trump has announced that he will not move forward this month with proposed tariffs on eight European nations, ending a major trade confrontation linked to his efforts to influence negotiations over Greenland.

The decision came at the World Economic Forum in Davos, where Trump said he and NATO Secretary General Mark Rutte agreed on a framework for future cooperation related to Greenland and Arctic security. As a result, the threatened tariffs which had been set to begin in February are being withdrawn. Trump did not provide full details of the framework but characterized it as a positive development for both the United States and its European allies.

The tariffs had been highly controversial. On January 17, Trump posted on social media that the United States would impose a 10% import tax on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland unless they accepted U.S. demands concerning Greenland. He said the rate would escalate to 25% by June if no agreement was reached.

European governments strongly rejected the plan, asserting that decisions about Greenland an autonomous territory of Denmark rested with Denmark and the island’s residents. Leaders from the EU and the UK called the tariff threats “unacceptable” and warned they could damage transatlantic relations.

Prior to the reversal, rejections were widespread. For example, French President Emmanuel Macron said intimidation would not change Europe’s position, and some EU lawmakers even paused approval of a major U.S.–EU trade agreement in protest.

The proposed tariffs also unsettled financial markets: U.S. stocks fell sharply in response to the threat of trade escalation before Trump’s announcement in Davos.

Although Trump has ruled out military action to take control of Greenland, his aggressive negotiations had placed strain on historic alliances, triggering debates in both Washington and European capitals about the future of NATO cooperation and transatlantic trade.