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Trump backs off tariff threats and hails 'framework of a future deal' on Greenland

President Trump delivers an address during the World Economic Forum's annual meeting in Davos, Switzerland, on Jan. 21.
Fabrice Coffrini
/
AFP via Getty Images
President Trump delivers an address during the World Economic Forum's annual meeting in Davos, Switzerland, on Jan. 21.

Updated January 21, 2026 at 2:46 PM CST

President Trump on Wednesday announced following a meeting with NATO Secretary General Mark Rutte that they had "formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region."

Trump added that because of the progress he is not planning to impose the tariffs he threatened on regional countries on February 1.

"Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress," he said in his Truth Social post.

The announcement — a marked backing off of the heated rhetoric from Trump preceding the conference — was a culmination of a day that began by with him ruling out military force to take over Greenland.

"We probably won't get anything unless I decide to use excessive strength and force where we would be, frankly, unstoppable. But I won't do that," he said during his speech at the World Economic Forum in Davos, Switzerland.

"That's probably the biggest statement I made, because people thought I would use force, but I don't have to use force — I don't want to use force. I won't use force," he said.

In his address, Trump went beyond his desire for Greenland and slammed European values as inferior to the values he is attempting to impose on the United States.

"Certain places in Europe are not recognizable anymore. They're not recognizable," he said. "In recent decades, it became conventional wisdom in Washington and European capitals that the only way to grow a modern Western economy was through ever-increasing government spending, unchecked mass migration and endless foreign imports."

The speech encapsulated a vision of the world where the importance of cooperation is dwarfed by the importance of self-interest, as well as economic and military strength.

Trump repeated his argument that U.S. ownership of Greenland is necessary for national security and that "who the hell wants to defend a license agreement or lease, which is a large piece of ice in the middle of the ocean."

The president referenced Greenland in that dismissive tone several times as a "piece of ice" that Denmark should be willing to give up. In the process, he also framed the U.S. as having a right to Greenland after the U.S. established a military presence there in World War II to protect it from invading Axis powers.

"So we want a piece of ice for world protection, and they won't give it. We've never asked for anything else, and we could have kept that piece of land, and we didn't. So they have a choice. You can say yes and we will be very appreciative, or you can say no and we will remember," Trump said.

Trump said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, "and various others, as needed" would be leading the Greenland framework negotiations.

Trump's antagonism toward allies in recent days

Just two weeks ago, Trump posted on social media that he'd address affordability when he spoke at the World Economic Forum.

But his belligerent foreign policy once again overshadowed his attempts at a cohesive economic message. Trump's aggressive push to acquire Greenland turned to open antagonism toward allies in the days leading up to this year's forum.

Just days before the forum began, Trump on social media threatened to tariff goods from eight European nations and NATO members until they supported a U.S. deal to purchase Greenland, which is an autonomous territory of the Kingdom of Denmark. In the following days, text messages revealed by Trump and other world leaders showed those leaders attempting to dissuade and placate Trump.

Canadian Prime Minister Mark Carney on Tuesday delivered a forceful speech that, without mentioning Trump explicitly, argued that Trump's policies are leading to the breakdown of the international order.

"Let me be direct: We are in the midst of a rupture, not a transition," Carney said. "Great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited."

"We stand firmly with Greenland and Denmark and fully support their unique right to determine Greenland's future. Our commitment to NATO's Article 5 is unwavering," he later added. "Canada strongly opposes tariffs over Greenland."

Trump responded to Carney directly on Wednesday, saying: "Canada gets a lot of freebies from us, by the way. They should be grateful also, but they're not. I watched your prime minister yesterday. He wasn't so grateful."

The foreign policy that Trump is bringing to Davos goes beyond Greenland. On Thursday, he will participate in what the White House is calling a Board of Peace charter announcement.

The Board of Peace is being created as part of Trump's 20-point plan to end the conflict between Israel and Hamas, and it has come under sharp criticism. A copy of the charter obtained by NPR said that countries that want permanent membership will have to pay $1 billion and that Trump is the permanent chair, even after he's president. The charter also says that the world needs a more effective international peace-building body, which may signal that the board is hoping to act as a rival to the United Nations.

The board's membership is still unsettled, but Trump said he has asked Russian President Vladimir Putin to take part. Meanwhile, French President Emmanuel Macron has said he will not join the board.

Economic messaging

Trump did eventually get to speaking about his efforts to tackle affordability in the United States. He called on Congress to pass a series of bills aimed at lowering costs, including bills on housing and capping credit card interest rates at 10% for one year.

Touting his executive order banning large institutional investors from buying single-family homes, he asked Congress to pass a law reinforcing the ban, saying, "And I think they will."

He said that surging credit card debt was one of the biggest barriers to saving for a down payment and said Congress should pass the credit card interest rate cap.

"This will help millions of Americans save for a home. They have no idea they're paying 28%. They go out there a little late in their payment, and they end up losing their house. It's terrible," he said.

Trump also touted the law he signed last year that helps ensure "America remains the crypto capital of the world." He noted that Congress is continuing to work on legislation to regulate the crypto market, "which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom."

The president also highlighted his work to lower prescription drug costs.

Copyright 2026 NPR

Danielle Kurtzleben
Danielle Kurtzleben is a political correspondent assigned to NPR's Washington Desk. She appears on NPR shows, writes for the web, and is a regular on The NPR Politics Podcast. She is covering the 2020 presidential election, with particular focuses on on economic policy and gender politics.