Markets rallied after President Trump dramatically dropped his tariff threat against the eight European countries he accused of trying to thwart his Greenland ambitions.
After telling the World Economic Forum in Davos that he would not use force to take Greenland he said he will not be imposing tariffs that were scheduled to go into effect on 1 February.
In a post on Truth Social he said, based upon a “very productive meeting” with the Secretary General of Nato Mark Rutte they “have formed the framework of a future deal with respect to Greenland”.
Details of the deal were not clear, though a Nato statement hailed a “very productive” discussion with Trump about the “critical security” of the Arctic region.
It added: “Negotiations between Denmark, Greenland and the United States will go forward aimed at ensuring that Russia and China never gain a foothold — economically or militarily — in Greenland.”
Mr Trump suggested his main goal all along was to secure the right to install and control the “Golden Dome” air defence system to protect the US from missile attacks.
He denied his interest in Greenland was its rare earth materials, saying, “Everyone talks about the minerals. But there’s so much rare earth and then just to get to this rare earth, you got to go through hundreds of feet of ice. It’s not the reason we need it. We need it for strategic national security and international security.”
In his social post he said: “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 1. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland.
“Further information will be made available as discussions progress. Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others, as needed, will be responsible for the negotiations — They will report directly to me. Thank you for your attention to this matter!”
After suffering their worst day since October on Tuesday, US equity markets opened sharply higher and gained further impetus later in the session.
At the close, the Dow Jones Industrial Average was up 1.21%, while the S&P 500 advanced 1.16% and the Nasdaq Composite saw out the session 1.18% firmer.
Denmark had long said that it was only too happy to see an increased American military presence on Greenland which now seems to be the likely outcome.
Conservative leader Kemi Badenoch said: “This will be a relief to businesses who are already facing so many challenges.
“It is also good to hear Trump rule out the use of force in Greenland. Greenland’s future must be decided by its people.”
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