Trump Claims "Framework" Deal on Greenland Amid NATO Tensions at Davos

President Donald Trump said the U.S. is "seeking immediate negotiations" to acquire Greenland, where Washington plans to build a "Golden Dome" to protect it from potential enemies, during his special address to the World Economic Forum in Davos on Wednesday. The announcement marked a dramatic reversal in tone from days of escalating tensions with European allies, though fundamental disagreements remain unresolved.

Following what Trump described as a "very productive meeting" with NATO Secretary General Mark Rutte, Trump announced they have "formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region." Trump said that as a result of that negotiation, he would no longer impose punitive tariffs on a slew of European countries that were set to begin February 1.

However, the vagueness surrounding the purported agreement raised immediate questions about its substance. In an interview with CNBC's Joe Kernen minutes after making the statement, Trump described the Greenland framework as the "concept of a deal." The details of that framework remain unknown, but Trump agreed to lift the tariffs he had threatened to slap on European allies starting February 1. Rutte later told Fox News that the issue of Greenland's sovereignty did not come up in their conversation.

Trump said he would not use military force in pursuit of the territory, in an apparent shift from his prior stance. "I don't have to use force — I don't want to use force. I won't use force," he said during his address. This marked a significant departure from earlier in the week, when Trump threatened to hit European countries with new tariffs starting at 10% next month and increasing to 25% in June over their opposition to his Greenland ambitions.

Danish Foreign Minister Lars Løkke Rasmussen said it was "positive" that Trump took military force off the table for acquiring Greenland but "that does not make the problem go away," noting "what was quite clear after this speech is that the president's ambition is intact."

"All we're asking for is to get Greenland, including right, title and ownership, because you need the ownership to defend it. You can't defend it on a lease," Trump said during his Davos speech. Trump said the framework deal would last "forever," and Greenland ranks eighth in the world for rare earth reserves, according to the Center for Strategic and International Studies. Trump told CNBC that the framework on Greenland involves mineral rights and the Golden Dome.

At Davos, Trump again issued a warning to Denmark, setting an ultimatum: "You can say yes, and we will be very appreciative. Or you can say no, and we will remember."

Trump arrived in Davos amid a tense atmosphere as European and allied leaders pushed back against his demands for control of the Arctic island, part of the Kingdom of Denmark. U.K. Prime Minister Keir Starmer told the British Parliament on Wednesday: "Threats of tariffs to pressurize allies are completely wrong. Britain will not yield on our principles and values about the future of Greenland under threats of tariffs."

Danish and Greenlandic officials have rebuffed the U.S., reiterating that Greenland is not for sale. European lawmakers suspended a trade agreement with the United States over tariff threats issued by Trump as part of his push to acquire Greenland, with the announcement coming minutes after Trump reasserted his call for U.S. ownership of Greenland during his Davos speech.

Trump lambasted America's NATO allies as unreliable partners, insisting the U.S. needs ownership of Greenland for security reasons. Trump claimed that NATO countries wouldn't come to America's defense, ignoring the fact that Denmark, in particular, fought alongside the U.S. after the 2001 terror attacks. "The problem with NATO is that we'll be there for them 100% but I'm not sure that they'd be there for us," Trump said.

Trump said U.S. Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and other officials would handle negotiations, reporting directly to him. This institutional structure suggests Trump intends to maintain high-level engagement on the issue despite his apparent willingness to pause immediate escalation tactics.

Stocks, which had plummeted a day earlier amid Trump's increasing aggression toward Greenland, immediately rebounded following the announcement of the framework agreement. However, the underlying tensions that precipitated market volatility remain unresolved, with fundamental disagreements between the U.S. administration and NATO allies over Arctic security, sovereignty, and the legitimacy of Trump's acquisition demands.

The coming weeks will test whether the vaguely-defined "framework" can evolve into actual negotiations or whether Trump's reassertion of his core demands signals renewed escalation once the diplomatic pause concludes.