Trump backs off tariffs over Greenland after NATO security talks

President Donald Trump said Wednesday he is dropping his threat to impose tariffs on several European countries, citing what he described as a new framework with NATO on Arctic security.

Asked how long the deal will last, Trump was clear it’s long term. “It’s a deal that’s forever,” he said. “It’s what’s called an infinite deal.”

The abrupt about-face comes shortly after he told the World Economic Forum in Davos that the U.S. would not use force to pursue control of Greenland. Trump nonetheless reaffirmed his ambition to secure “right, title and ownership” of the island and urged NATO allies not to stand in the way, warning that refusals would carry consequences for the alliance.

“This enormous unsecured island is actually part of North America,” Trump said. “That’s our territory.”

Trump also said that the U.S. is booming but Europe is “not heading in the right direction.” His ambitions to wrest control of Greenland from NATO ally Denmark threaten to tear apart relations with many of Washington’s closest allies.

Key points from Trump’s Davos speech

Trump tried to focus on his efforts to tame inflation and spur the economy back home. But his appearance at the gathering of global elites focused more on his gripes with other countries.

He called for “immediate negotiations” for the U.S. to acquire Greenland from Denmark, lashing out at the Scandinavian country for being “ungrateful” for the U.S. protection of the Arctic island during World War II, and continued to make his case that the U.S. needs to control the island for the sake of national security.

Trump claimed “without us, most of the countries don’t even work,” also taking digs at French President Emmanuel Macron over Europe for selling pharmaceuticals to the U.S. at a premium, and blasting NATO for being too dependent on the United States.

Trump cancels tariff threat over Greenland and announces deal ‘framework’

Trump says he and NATO Secretary General Mark Rutte agreed to “the framework of a future deal” on Greenland and the Arctic region that will take his Feb. 1 threat of tariffs off the table.

The announcement on his Truth Social platform came soon after he said in a speech at the World Economic Forum in Davos that he was backing off his threat of using military force to seize the Danish territory, which he says is crucial to U.S. national security.

Trump said further discussions are being held related to Greenland and his plans for a “Golden Dome” to protect the United States from long-range missiles. He added that further information will be available as discussions continue.

Trump says deal will last ‘forever’ and ‘gets everything we wanted’

As he departed the World Economic Forum for the day, Trump said his newly agreed-upon framework of a deal with NATO’s chief is “a great deal for everybody.”

He told reporters everyone would be happy with the deal, which relates to Greenland and the Arctic. While he said people are still working out the details, he emphasized it would be “really fantastic for the U.S.A.”

Asked how long the deal will last, Trump was clear it’s long term.

“It’s a deal that’s forever,” he said. “It’s what’s called an infinite deal.”

Trump has backed off tariffs before

It’s not the first time Trump has threatened tariffs, only to later back away.

In April, after first saying he would slap massive tariffs on nations from around the world — prompting a sharp negative market reaction — Trump eased off. He bristled at suggestions he had chickened out, saying, “It’s called negotiation.”

Trump also moderated what had been aggressive posturing on Greenland on Wednesday when he said he wouldn’t take the territory by force. The U.S. stock market is steadying following those remarks.

Canada’s leader met with NATO chief ahead of Trump’s announcement

Canadian Prime Minister Mark Carney met Wednesday with NATO Secretary General Mark Rutte, with both agreeing on the need to speed up new investment along the alliance’s northwestern flank, Carney’s office said.

He told Rutte that Canada was already planning to quadruple defense spending over the next decade, including major investments to strengthen the country’s Arctic sovereignty.

The meeting came ahead of Rutte’s talks with Trump, who then announced they’d reached what the president called a framework agreement with NATO on Arctic security.

Carney said in a speech at Davos on Tuesday that middle-power countries need to stop pretending the rules-based order is still functioning and urged them to rally together against threats from great powers.

Trump declines to name a price for Greenland

Trump declined to name a reasonable price for the United States to buy Greenland during a meeting in Davos with the NATO secretary general.

“There’s a bigger price, and that’s the price of safety and security and national security and international security having to do with many of your countries,” Trump responded when asked by The Associated Press how he would calculate a reasonable offer for the strategic land mass. “That’s really the price. It’s a big price.”

Trump responded ambiguously when asked to elaborate on his earlier comment that “we will remember” if Denmark refuses to sell Greenland to the U.S.

“You’ll have to figure that out for yourself,” he told a reporter.

Trump administration now offers migrants $2,600 to leave the US

The Trump administration is raising from $1,000 to $2,600 the stipend if offers migrants to leave the United States.

The Department of Homeland Security announced that beginning on Wednesday it is offering the incentive to people who arrived illegally at the U.S. and sign up for voluntarily deportation through the CBP Home mobile application. In addition, they will still receive a free flight to their home country.

DHS said tens of thousands of people have used the app to request the stipend. It is not clear how many have received the money.

The cost of a single enforced deportation is $18,245, according to DHS. The cost of a self-deportation is $5,100, including the flight.