US President Donald Trump has withdrawn his threat to impose tariffs on several European nations over the disputed issue of Greenland. The announcement came on Thursday following what he described as a "very productive" meeting with NATO Secretary General Mark Rutte.

Trump had previously warned of tariffs starting 1 February unless European allies addressed US demands for control over Greenland, the strategically vital Arctic territory under Danish administration. This move signalled a significant de-escalation in transatlantic tensions.

In a post on Truth Social, Trump revealed that the discussions established a "framework of a future deal" concerning Greenland and the broader Arctic region. He described the potential agreement as beneficial for both America and its NATO partners.

The US President emphasised that this understanding prompted his decision to suspend the planned tariffs. Additional negotiations will focus on "The Golden Dome," a project Trump linked directly to Greenland's strategic importance.

Senior US officials, including Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff, will lead the talks. They will report directly to Trump as discussions progress.

Trump's renewed push for Greenland dominated his address at the 56th World Economic Forum in Davos. He called for "immediate negotiations" with European allies, framing US acquisition of the territory as essential for national security.

The President argued that only America possesses the capability to protect, develop, and secure Greenland's vast landmass. He positioned this as advantageous for both the US and Europe, drawing historical parallels to past territorial acquisitions.

Greenland's location offers unparalleled strategic value, particularly amid intensifying Arctic competition involving Russia and China. Washington views its mineral resources and position as critical for defence infrastructure, including the mysterious "Golden Dome" initiative.

Trump dismissed NATO concerns, insisting US control would enhance rather than threaten the alliance. He accused European members of treating America unfairly while reiterating that Greenland's security requires American stewardship.

Denmark and Greenland's leadership have firmly rejected any sale or transfer, prioritising self-determination. European diplomats warned that coercive tactics could fracture NATO unity, given Denmark's membership.

The tariff threat—initially 10 per cent from February, escalating to 25 per cent by June—had alarmed markets and strained alliance relations. Trump's reversal suggests diplomatic progress, though core disagreements persist.

This development occurs against Trump's broader Davos agenda, where he also addressed Ukraine peace efforts, India-US trade prospects, and relations with leaders like Xi Jinping and Vladimir Putin. The Greenland framework represents his most concrete diplomatic achievement thus far.

Analysts note that while the tariff suspension averts immediate economic fallout, the "framework" remains vague. Successful implementation will require navigating Danish sovereignty claims, Greenlandic autonomy, and NATO sensitivities.

The Arctic's militarisation underscores Greenland's importance. Melting ice opens new shipping routes and resource access, prompting Russia's base expansions and China's infrastructure investments—factors amplifying US strategic imperatives.

Trump's team frames the Golden Dome as a defensive asset, though details remain classified. Speculation centres on missile defence, surveillance, or rare earth mining infrastructure essential for advanced weaponry.

European markets reacted positively to the tariff reprieve, with Indian benchmarks like Nifty and Sensex also gaining as investors anticipated smoother US-India trade paths. Global sentiment improved amid reduced trade war fears.

Critics question whether the framework truly resolves underlying tensions or merely postpones confrontation. Denmark maintains Greenland's inalienable status, while Trump signals unwavering commitment to acquisition.

As negotiations advance, all eyes remain on Davos outcomes. Trump's personal diplomacy with Rutte demonstrates his preference for direct engagement, potentially reshaping Arctic geopolitics and NATO dynamics for years ahead.

Based On ANI Report