Trump caved. After weeks of bellicose threats to seize Greenland from Denmark—including promising tariffs on eight European nations if they didn’t hand over the island—the president announced Wednesday he’s essentially scrapping the whole thing.
The dramatic reversal came just hours after Trump used his World Economic Forum speech to declare that NATO should “stand aside” and warned ominously: “You can say yes, and we will be very appreciative. Or you can say no, and we will remember.”
WHAT’S GOING ON: In a post on his social media site, Trump claimed he’d agreed with NATO Secretary General Mark Rutte on a “framework of a future deal” on Arctic security. What that actually means remains fuzzy—the president offered few details, saying they’re “still being worked out.”
One idea NATO members discussed as a compromise: Denmark and the alliance would work with the U.S. to build more military bases on Greenland. That’s according to a European official familiar with the matter who spoke anonymously because they weren’t authorized to comment publicly.
The tariffs Trump threatened—starting at 10% next month and climbing to 25% in June—are now off the table. For now.
THE DETAILS: Earlier Wednesday, Trump was practically frothing at the podium in Davos, demanding “immediate negotiations” for the U.S. to acquire Greenland and calling it “a very small ask” compared to what America gave Europe during World War II. He mistakenly called it “Iceland” four times during his speech. (Seriously.)
“We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But I won’t do that, OK?” Trump said—the kind of reassurance that doesn’t actually reassure anyone.
But then, according to the AP, Rutte told Trump, point-blank, that NATO would defend the U.S. if attacked: “You can be assured, absolutely.” A short time later came Trump’s post canceling the tariffs.
BUT BUT BUT: Don’t mistake this for some diplomatic breakthrough. Danish Foreign Minister Lars Løkke Rasmussen welcomed Trump “ruling out taking Greenland by force” and “pausing the trade war with Europe”—but note the word “pausing.” The underlying tension hasn’t evaporated.
And Trump has pulled this move before. In April, he threatened massive global tariffs, watched markets tank, then backed off. It’s the same playbook: threaten chaos, create crisis, claim victory when you simply return to the status quo.
WHY IT MATTERS: Financial markets that had fallen sharply on Trump’s tariff threats bounced back Wednesday. Greenland residents who had rushed to buy camping stoves and emergency supplies can breathe a bit easier—for now.
But the episode reveals something deeper: Trump was willing to threaten rupturing NATO—an alliance that’s anchored Western security since the Cold War—over an island he kept calling by the wrong name. European allies held firm, called his bluff, and he folded.
As Greenland resident Johnny Hedemann put it before the reversal: “Living in this nature, you have to be prepared for almost anything. And now there’s another threat—and that’s Trump.”