World

Trump backs down on Greenland tariff threat

Jan 23, 2026 United States

The US has cancelled its threat to impose tariffs on eight European countries in an effort to push for US control of Greenland, following talks with NATO Secretary General Mark Rutte

Trump announced that the previously announced tariffs against eight European NATO allies had been cancelled, citing a “framework deal” regarding the security of the Arctic that had been reached with NATO Secretary General Mark Rutte at the World Economic Forum in Davos. He offered few details, saying that they were still being finalised.

However, diplomatic sources told CBS that NATO members have discussed the idea of Denmark collaborating with the US to construct additional US military bases in Greenland as part of a potential compromise with Trump.

A NATO spokesperson also confirmed that no proposal had been made to alter Denmark’s territorial integrity. Danish Prime Minister Mette Frederiksen reiterated that Copenhagen was open to dialogue on Arctic security, provided national sovereignty was respected.

European reactions have been cautious, but the announcement marks a de-escalation from earlier US tariff threats tied to Greenland, which had raised concerns about a broader trade conflict among NATO members.

Trump had previously announced plans to impose an additional 10% tariff on all goods entering the United States from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, effective from the 1^st of February. This measure was linked to his demands for US control over Greenland. The tariff was set to rise to 25% on the 1^st of June if these demands were not met.

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