Trump strikes ‘framework’ for deal on Greenland, Arctic and drops threat of tariff on Europe

President Trump said Wednesday he struck a framework for a deal on Greenland and the Arctic after a productive conversation with NATO Secretary General Mark Rutte, prompting him to drop military and trade threats against Europe.

Mr. Trump said the framework, if consummated, would be a win for the U.S. and NATO.

“It’s a long-term deal. It’s the ultimate long-term deal, and it puts everybody in a really good position, especially as it pertains to security,” Mr. Trump told reporters at the World Economic Forum in Davos, Switzerland, where he met with Mr. Rutte and other European leaders.

The president did not say the deal would grant U.S. ownership of Denmark-controlled Greenland or if it would simply increase American leeway over the massive island.

But the framework for a deal was enough for Mr. Trump to back off his threat to impose tariffs on eight European nations that had opposed his annexation plan.

The decision to drop the tariff threat was a significant olive branch to leaders in Davos, hours after he confirmed he would not use military force to take Greenland.

At the same time, he left no doubt that he preferred to take “title” over Greenland, saying the U.S. takes on an outsize role in Western security and is the only country prepared to keep China and Russia at bay.

“We want a piece of ice for world protection, and they won’t give it,” Mr. Trump said in a special address to the gathering of political and business leaders. “They have a choice: You can say yes, and we will be very appreciative, or you can say no, and we will remember.”

Mr. Trump characterized the emerging plan as a “concept of a deal” and a “framework of a future deal” on the Arctic.

Speaking to CNBC, he suggested his maximum pressure campaign on Europe had paid off, clearing the way for mineral rights on the island and permission to build his Iron Dome anti-missile program over the Arctic.

“We’ll explain it down the line,” Mr. Trump told host Joe Kernen. “It’s the kind of deal that I wanted to be able to make.”

Mr. Trump’s push for Greenland stretches back to his first term in the White House. He says America’s reign over Greenland would keep Moscow and Beijing from controlling the strategic island.

His push took on added urgency after the U.S. capture of Venezuelan President Nicolas Maduro on narco-terrorism charges.

The raid made it clear that Mr. Trump would be flexing a “Don-roe Doctrine” that views the U.S. as the dominant power in the Western Hemisphere and boxes out Moscow and Beijing.

But Mr. Trump’s fixation on Greenland sparked tension with European leaders in recent weeks, and protesters flooded the streets in Greenland and Copenhagen.

Some onlookers in Switzerland gave Mr. Trump’s motorcade the middle finger on its way to the Davos forum.

Mr. Trump made combative remarks inside the hall, saying Europe had lost its way on migration and other issues, though he ruled out the use of force to grab Greenland.

“I don’t have to use force. I don’t want to use force. I won’t use force,” he said.

His retreat from tariffs allowed Europe to breathe a second sigh of relief.

The tariffs would have impacted the U.K., Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland, starting at 10% in February and rising to 25% by June if the U.S. does not acquire Greenland.

On Tuesday, French President Emmanuel Macron said Europe should not hesitate to deploy anti-coercion measures that would retaliate against the U.S. The European Union considered suspending the trade deal-in-principle it reached with Mr. Trump last year, instead of finalizing it.

Instead, Mr. Trump surprised everyone by striking the framework with Mr. Rutte. The president tasked Vice President J.D. Vance, Secretary of State Marco Rubio and Special Envoy Steve Witkoff with leading negotiations on the deal.

Sen. Lindsey Graham, South Carolina Republican, said the emerging agreement offered a critical way forward in the Arctic.

“President Trump believes he needs title to advance the common defense by fortifying Greenland to protect the United States and NATO allies,” he wrote on social media. “To my NATO friends: Don’t let this moment pass. This is a great deal for everyone. We’re on the verge of having President Trump fortify the Arctic like no one could have ever imagined.”

Wall Street stocks rebounded into positive territory on Wednesday after a sell-off on Tuesday, buoyed by Mr. Trump’s retreat from a military option and tariffs.

Despite progress, Mr. Trump made it clear that he thinks Europe has taken advantage of the U.S., and it is time to recalibrate the relationship.

Mr. Trump repeatedly characterized his pursuit of Greenland as a course correction from the post-World War II period, saying the U.S. effectively returned Greenland to European control after defeating the Axis powers.

The U.S. occupied Greenland following the war and made agreements with Denmark to maintain a military presence. Today, that’s mainly performed at Pituffik Space Base.

“We gave it back to them,” Mr. Trump said of Greenland, adding that ownership is paramount.

“You can’t defend it on a lease,” he said. “Psychologically, who the hell wants to defend a license agreement?”

Before Wednesday’s breakthrough, the president’s threat to seize Greenland had posed risks at home. Some Republicans worried it would upset the NATO alliance, while Democrats say it will distract from domestic priorities.

Mr. Trump said Wednesday the U.S. is experiencing an “economic miracle,” pointing to high growth and energy production, but voters remain concerned about high prices for things like groceries and utilities.

California Gov. Gavin Newsom, a Democrat, said he was “a little disappointed, a little nonplussed” with the president’s address and faulted him for seeming to confuse Greenland and Iceland at various points.

“He’s graded on a curve,” the governor told CNN. “There wasn’t anything new in that speech for the American audience.”

Mr. Trump did carve out a section of his Davos speech to address home affordability. He pointed to a new effort to ban large institutional investors from purchasing single-family homes.

“Homes are built for people, not for corporations, and America will not become a nation of renters,” the president said. “We’re not going to do that.”

Yet Mr. Trump’s comments on Greenland swiftly overshadowed his domestic plans.

“The military’s not on the table. I don’t think it will be necessary, I really don’t,” Mr. Trump said. “I think people are going to use better judgment.”

• Mary McCue Bell contributed to this report.