Trump freezes tariffs on Europe and revives Greenland push

After trade threats, the U.S. president announces a “framework agreement” on the Arctic. Markets rise, but Denmark and allies push back: sovereignty is not negotiable.

Donald Trump has stepped back from imposing tariffs on Europe while reviving his controversial strategy on Greenland. The U.S. president announced that he would suspend the tariffs on European goods that were set to take effect on February 1, claiming that a “framework for a future agreement” has been reached regarding the Arctic island and, more broadly, Arctic security. The announcement came after a meeting with NATO Secretary General Mark Rutte on the sidelines of the World Economic Forum in Davos.

Trump, however, provided no concrete details about the alleged deal, describing it only as a “very long-term” agreement, potentially “infinite.” The vagueness immediately raised doubts, particularly after Denmark reiterated that it is unwilling to negotiate the transfer of Greenland. “We can discuss security, investments and the economy, but not our sovereignty,” Danish Prime Minister Mette Frederiksen said.

According to media reports, the proposed framework would include respect for Danish sovereignty, alongside a greater U.S. role in regional security, mineral resources, and missile defense in the area, including the Golden Dome project. NATO has confirmed the launch of talks among the United States, Denmark, and Greenland aimed at preventing Russia and China from gaining economic or military influence in the Arctic region.

Markets reacted positively to the suspension of tariffs: Wall Street closed higher and the dollar strengthened. Political tensions, however, remain high. Trump’s earlier threats had prompted the European Parliament to freeze ratification of the EU–U.S. trade agreement and sparked sharp criticism from several European leaders, who expressed concern over the use of trade measures as a tool of geopolitical pressure.

Although Trump has ruled out the use of military force to gain control of Greenland, the episode has left deep scars on transatlantic relations. And while the storm appears to be subsiding, the unpredictability of the American president continues to keep allies and markets on edge.

Andrea Pelucchi