Trump Backs Off Tariffs, Rules Out Force Over Greenland in Davos Speech

Summary: At the World Economic Forum, Trump eases on tariffs on Europe, and says the U.S. seeks a deal, not force, over Greenland.

At the World Economic Forum on Wednesday, U.S. President Donald Trump addressed world leaders with remarks that eased a recent diplomatic standoff with Europe over Greenland and threatened tariffs — signalling a shift in tone from confrontation to negotiation.

Trump, speaking to the annual gathering of political and business leaders in Davos, said the United States had formed a “framework of a future deal” relating to Greenland and ruled out imposing the punitive tariffs he had previously threatened on several European nations.

He also made clear that the U.S. would not use military force to try to acquire the Danish-ruled Arctic island — a stance that appeared designed to calm allies after days of sharp tensions. Trump said negotiations would begin immediately, but he reiterated his long-held desire for the United States to play a stronger role in Greenland’s future.

The remarks helped ease market nervousness. Global shares rebounded on Wednesday after earlier selloffs triggered by fears that a U.S.–Europe trade clash, tied to the Greenland dispute and threatened tariffs, could escalate. Investors welcomed the shift toward diplomatic engagement and the shelving of immediate tariffs that had been set to take effect next month.

While Trump did not provide full details of the so-called deal framework, the messaging signalled a thaw in rhetoric. The president’s earlier comments had alarmed European allies and raised concerns about a deep rupture in transatlantic relations, in part because his administration had tied tariff threats to Greenland negotiations — a move European officials viewed as coercive.

Trump also delivered broader messages on the U.S. economy, contrasting American economic performance with what he described as challenges facing Europe. He said inflation had been defeated and touted strong growth at home — remarks meant to underscore the strength of the U.S. economy even as diplomatic flashpoints surfaced.

For many European officials and NATO partners at Davos, the most cautious note was the reaffirmation that the United States would not resort to force. Denmark — which governs Greenland as an autonomous territory — had rejected earlier suggestions that the island could be ceded to the United States, and European leaders insisted that sovereignty and international law must be respected.

Still, the Greenland issue remains a sensitive point in transatlantic relations. Trump’s call for “immediate negotiations” will test how both sides can find common ground without eroding long-standing alliances. Observers say the coming days of talks at Davos could define whether this episode becomes a diplomatic flashpoint or a negotiated détente.