Trump pivots to diplomacy, calming markets and allies while locking Arctic security against Russian-Chinese ambitions.
US President Donald Trump abruptly stepped back Wednesday from threats of tariffs and military pressure over Greenland, signaling a decisive shift toward diplomacy after consultations with allies and market turbulence during the World Economic Forum in Davos.
Following discussions with NATO Secretary General Mark Rutte, Trump said Washington and its partners could reach a durable agreement addressing Arctic security and mineral access—without coercion. He described the emerging framework as a “long-term” and “forever” deal that strengthens collective security while reassuring allies.
Earlier rhetoric—floating escalating tariffs on exports from multiple European states—had rattled markets and revived fears of a transatlantic rift. But Trump explicitly ruled out the use of force, easing investor anxiety and triggering a sharp rally on Wall Street.
On his Truth Social platform, Trump said the US and NATO had formed a framework covering Greenland and the broader Arctic, adding that scheduled tariffs would not take effect. A NATO spokesperson emphasized that talks among Denmark, Greenland, and the United States aim to ensure Russia and China gain no economic or military foothold.
Trump confirmed he tasked Vice President J. D. Vance, Secretary of State Marco Rubio, and envoy Steve Witkoff to advance negotiations. The message is clear: firm leadership, allied unity, and strategic patience can secure the Arctic—without breaking the Western alliance.
