US President Donald Trump on Wednesday said more import tariffs he had threatened to levy against several European countries over Greenland would not go into effect after a conversation with Nato Secretary General Mark Rutte and progress towards a deal on the Arctic.
On Saturday, Mr Trump said he would be impose new tariffs on countries that have supported Denmark over its sovereignty in Greenland until a deal is agreed to for America to acquire the mineral-rich island.
At the World Economic Forum in Davos, Mr Trump earlier blasted allies but said military force would not be used to seize Greenland. He then spoke to Mr Rutte and praised the Nato chief for doing a “fantastic job”.
“Based upon a very productive meeting that I have had with the Secretary General of Nato, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic region,” Mr Trump wrote on Truth Social.
“This solution, if consummated, will be a great one for the United States of America, and all Nato nations. Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st.”
The development came shortly after Mr Trump gave a speech in which he railed against western countries that have sent members of their armed forces to Greenland as a symbol of solidarity with fellow Nato member Denmark.
Western capitals have been in a panic since Mr Trump's renewed threats to seize Greenland from Denmark. Any military move on the vast Arctic island could mean the break-up of the 32-member military alliance.
"We need it for strategic national security and international security, this enormous unsecured island is actually part of North America, on the northern frontier of the Western Hemisphere – that's our territory," he said during his speech in Davos.
The crisis sparked a stock market sell-off on Tuesday, wiping billions from the value of American companies.
"It's a little complex," Mr Trump later told CNBC about the deal, adding that details would be revealed "down the line."
The US President has denied that he was motivated by Greenland's rare earth deposits, arguing that it was too arduous to go through "hundreds of feet of ice".
He insisted, rather, that the territory was at risk from Chinese and Russian ambitions.
A planned Golden Dome US defence system, Mr Trump said, would protect Greenland from advanced threats such as hypersonic and intercontinental ballistic missiles from Russia and China.
