Trump Hails 'Long-Term Deal' on Greenland, But EU Pact in Limbo

President Donald Trump suggested on Wednesday that a deal was in sight on US use of Greenland, after he ruled out use of force and backed away from imposing tariffs as a way to seize control of the Arctic island.

Trump spoke at Davos in Switzerland and eased the simmering rupture in transatlantic tensions after days of claims that strained the NATO alliance and spurred the prospect of a trade war with Washington’s European allies.

Trump’s announcement that he would not use force in his bid to take the Arctic island from Denmark caused a rebound in global stock markets, which had slumped in previous days after he said Greenland was needed to ensure US security. The S&P 500 index rose by 1.16%, its biggest one-day percentage rise in two months.

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“People thought I would use force, but I don’t have to use force,” he said at the World Economic Forum’s annual summit in Switzerland. “I don’t want to use force. I won’t use force.”

Trump “took a hectoring tone, chastising the United States’ European allies for the insolence, disloyalty and policy missteps in areas ranging from wind power and the environment to immigration and geopolitics,” Reuters said, noting that his threats toward Europe – and impose tariffs on eight nations – over Greenland had frayed trans-Atlantic ties and worried Europeans.

Denmark was “ungrateful” for rejecting a US takeover, which he described as a “small ask” over a “piece of ice,” while insisting that such a move was no threat to the NATO alliance or Denmark.

The US leader said he was “seeking immediate negotiations to once again discuss the acquisition of Greenland by the United States.”

“So they have a choice,” he said. “You can say yes, and we will be very appreciative. Or you can say no, and we will remember.”

Journalists also noted that Trump mistakenly referred to Greenland as Iceland several times during his speech, which lasted over an hour.

Trump hails framework deal

However, after meeting with Mark Rutte, the secretary-general of NATO, Trump said the two sides would come to a new agreement that will boost Washington’s plan for a ‘Golden Dome’ missile-defence system and block Russia and China’s alleged ambitions in the Arctic.

“It’s a deal that everybody’s very happy with,” Trump told reporters. “It’s a long-term deal .. the ultimate long-term deal. It puts everybody in a really good position, especially as it pertains to security and to minerals. It’s a deal that’s forever.”

“Negotiations between Denmark, Greenland, and the United States will go forward aimed at ensuring that Russia and China never gain a foothold – economically or militarily – in Greenland,” a NATO spokesperson said.

In a post on Truth Social, Trump said the US and NATO “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region, adding that “based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

Critics said the US leader’s change of tone followed a pattern of backdowns and reversals.

European diplomats also questioned whether the dispute had been resolved, while Denmark said the issue should be managed through private talks. Trump had demanded ownership of the island, which has 57,000 residents who say their homeland is not for sale.

Denmark’s Foreign Minister Lars Lokke Rasmussen said: “What is crucial for us is that we get to end this with respect for the integrity and sovereignty of the kingdom (of Denmark) and the right of the Greenlandic people to self-determination.”

Russia, China play down Arctic ambitions

China and Russia, meanwhile, were doing their best to reassure the world that they had no intention to vie for control of Greenland.

Russian President Vladimir Putin was quoted by local news outlets as telling his National Security Council: “What happens in Greenland is of absolutely no consequence to us.”

And a spokesperson of the Chinese foreign ministry, Guo Jiakun, told a regular news briefing: “We have no intention of competing for influence with any country, nor would we ever do so.”

Guo said they only engage in “friendly exchanges” with all nations “on the basis of mutual respect and equality.” And they are “committed to being a positive, stabilising and constructive force.”

China’s state media were far more blunt. The Global Times said Europe had grown excessively dependent on the United States while sidelining cooperation with “partners” such as China and Russia.

And the China Daily said in an editorial that Europe should boost its strategic autonomy and diversify its partnerships.

“The situation underscores the necessity for Europe to review the nature of transatlantic relations and reduce its reliance on the United States as a pillar of support for its security.

Cutting ties with the US would help Europe to “ensure that its future is not dictated by the diktats of a bully, but is instead shaped by its collective interests.”

Carney lauded for realistic stance

Canadian PM Mark Carney won the floor at Davos (Reuters).

Trump’s speech at Davos was largely met with silence. The day before his arrival, Canadian Prime Minister Mark Carney made a far more positive impression with the business chiefs who travelled to Davos.

Carney said the “old world order was not coming back” and there was no point mourning its end or hoping that multilateralism would continue. Instead, smaller countries need to band together to avoid being overpowered by larger nations.

Middle power nations, like his, were not powerless, but just needed to build a new world order based on new alliances and shared interests. And he surely had the most notable quote of the day.

“Middle powers must act together because if you are not at the table, you are on the menu.”

“This is not naive multilateralism,” Carney said. “Nor is it relying on diminished institutions. It is building the coalitions that work, issue by issue, with partners who share enough common ground to act together. In some cases, this will be the vast majority of nations.

“And it is creating a dense web of connections across trade, investment, culture on which we can draw for future challenges and opportunities.”

In an era of great power rivalry, Carney’s remarks won him a standing ovation.

Shortly after Trump’s speech, the EU said it had suspended its $750-billion trade deal with the United States.

Trump has assigned Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff to undertake further talks but no date or venue has been set.