- President Donald Trump assured Davos attendees the U.S. won't use force to acquire Greenland.
- He criticized European allies for disloyalty and policy missteps in various areas.
- Trump emphasized only the US can secure Greenland, seeking immediate acquisition negotiations.
DAVOS, Switzerland — After weeks of rhetoric that risked the deepest rupture in transatlantic relations in decades, President Donald Trump abruptly stepped back on Wednesday from threats to impose tariffs as leverage to seize Greenland, and said a deal was in sight to end the dispute.
"We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote on his Truth Social platform. "Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st."
Trump made the comments after ruling out taking the Danish territory by force in a speech at the World Economic Forum annual meeting in Davos, Switzerland, meeting with NATO Secretary General Mark Rutte and acknowledging financial markets' discomfort with his threats.
Trump said he had tasked Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff to take part in the discussions and would make more information available "as discussions progress."
"People thought I would use force, but I don't have to use force," Trump said earlier in his speech at the Swiss Alpine resort. "I don't want to use force. I won't use force," he added.
The change in posture on tariffs sparked a stock market rally, with the S&P 500 index up over 1.5%. That added to the market's recovery after the sharpest equities selloff in three months.
NATO allies have been unnerved by Trump's increasing threats to seize the territory from Denmark, which is a longtime U.S. NATO ally.
But in his year in office, Trump has also repeatedly made severe threats that spooked markets, only to water them down or withdraw them completely.
Trump's escalating threats to Europe over Greenland have frayed transatlantic ties and worried Europeans, overshadowing a speech intended to focus primarily on the U.S. economy.
Calling Denmark "ungrateful," the Republican president played down the issue as a "small ask" over a "piece of ice" and that an acquisition would be no threat to the NATO alliance, which includes Denmark and the United States.
"No nation or group of nations is in any position to be able to secure Greenland other than the United States," Trump said, adding: "I'm seeking immediate negotiations to once again to discuss the acquisition of Greenland by the United States."
On several occasions during a speech that lasted more than an hour, Trump mistakenly referred to Greenland as Iceland.
Trump, who marked the end of a turbulent first year in office on Tuesday, is set to overshadow the agenda of the World Economic Forum, where global elites chew over economic and political trends.
NATO leaders have warned that Trump's Greenland strategy could upend the alliance, while the leaders of Denmark and Greenland have offered a wide array of ways for a greater U.S. presence on the strategic island territory of 57,000 people.
"We want a piece of ice for world protection, and they won't give it," Trump said in his speech to a packed congress hall.
Hundreds of delegates gathered in the lobby to listen or watch Trump's speech on video monitors or on mobile phones. After an hour, most of them had tuned out and resumed chatting.
Contributing: Dave Graham, Ariane Luthi and Dmitry Zhdannikov
