Trump Says Greenland 'Framework' Deal Lets Him Pause Threatened European Tariffs, Stocks Jump
At Davos, Trump said a "framework of a future deal" on Greenland and the Arctic was reached after talks with NATO Secretary General Mark Rutte, and he announced he will not impose the 10% tariffs on eight European countries set to take effect Feb. 1 (which would have risen to 25% in June), naming Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff to lead ensuing negotiations. The move — in which Trump also insisted he won't use force to seize Greenland while continuing to press U.S. claims — sparked a market relief rally (S&P up about 1.5%, Dow higher and Treasury yields down) even as Denmark and NATO allies reiterated Greenland's sovereignty and their "red lines."
📌 Key Facts
- President Trump announced he will not impose the tariffs that were scheduled to take effect Feb. 1 after saying he and NATO Secretary‑General Mark Rutte formed the “framework of a future deal” on Greenland and the broader Arctic following meetings at Davos.
- The threatened tariffs targeted eight European countries — starting at 10% on Feb. 1 and escalating to 25% on June 1 if the U.S. did not acquire Greenland — a timeline and escalation Trump had previously publicized.
- Trump assigned Vice President J.D. Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff to lead follow‑on negotiations over Greenland and his proposed “Golden Dome” missile‑defense plan; they will report directly to him.
- Financial markets reacted with relief: U.S. stocks jumped (the S&P 500 rose nearly 1.5%), long‑term Treasury yields fell, and the Dow and broader markets showed immediate positive movement on the announcement.
- Trump said he “won’t” use force to seize Greenland and is “seeking immediate negotiations,” but he also reiterated that he wants “right, title and ownership” of the island, described it as “cold and poorly located,” and boasted the U.S. would be “unstoppable” if it chose to use force.
- Allied pushback was strong: NATO members stressed Greenland is not for sale, Denmark reiterated sovereignty “red lines,” and Greenland’s government published a crisis‑preparation handbook as residents reportedly stocked up on supplies.
- The developments unfolded at the World Economic Forum in Davos, where Trump’s presence and remarks prompted criticism from figures like California Gov. Gavin Newsom — who accused European leaders of “rolling over” for Trump and said financial markets might be the only force to alter his course — while EU and Chinese officials were featured as counterweights at the forum.
- Cost context for Trump’s Golden Dome was highlighted: the White House cites roughly $175 billion for the system, while the Congressional Budget Office previously estimated the space‑based interceptor portion could cost between $161 billion and $542 billion over 20 years.
📰 Source Timeline (11)
Follow how coverage of this story developed over time
January 21, 2026
10:19 PM
Stocks jump after Trump calls off Europe tariffs over Greenland
New information:
- CBS segment explicitly notes that U.S. stocks "jumped" after Trump said he had reached a Greenland framework and backed off his tariff threat.
- The piece frames the tariff pullback first and foremost through its effect on the Dow and broader stock market, reinforcing that investors reacted positively in the short term.
8:00 PM
Trump backs off from tariff threat over Greenland
New information:
- CBS piece directly quotes Trump’s Truth Social post saying he 'will not be imposing the Tariffs that were scheduled to go into effect on February 1st,' clarifying that this specific tranche is canceled, not merely delayed in some vague sense.
- The article specifies the threatened tariffs were 10% on eight European countries opposed to his Greenland push, rising to 25% if the U.S. did not acquire the island, spelling out the escalation ladder more concretely than the prior summary.
- It notes this was Trump’s first explicit public statement that he 'won’t use force' to seize Greenland and that he is 'seeking immediate negotiations' instead — an important shift in public framing of the military option.
- The CBS report ties the rollback directly to a meeting with the NATO secretary‑general at Davos, framing the 'framework of a future deal' as a Trump–Rutte understanding rather than a purely unilateral announcement.
- It repeats, with direct quotation, that Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff will 'be responsible for the negotiations' over Greenland and the 'Golden Dome' and will report directly to Trump.
7:55 PM
Trump cancels tariff threat over Greenland, says NATO agreed to 'framework' of future Arctic deal
New information:
- AP/PBS piece provides additional on‑the‑record quotes from Trump’s Davos speech, including him calling Greenland 'cold and poorly located' while insisting he wants 'right, title and ownership' of the island.
- The article emphasizes that Trump explicitly said he 'won’t' and 'doesn’t want to' use force to take Greenland, while still boasting that the U.S. would be 'unstoppable' if he chose 'excessive strength and force.'
- It adds reaction from a Danish official reiterating Copenhagen’s 'red lines' on sovereignty and willingness only to discuss U.S. security concerns, plus details on Greenland’s government publishing a crisis‑preparation handbook and residents stocking up on supplies.
- The piece underscores that NATO members remain unified that Greenland is not for sale and cannot be wrested from Denmark, framing Trump’s rhetoric as a potential rupture in an alliance dating back to the Cold War.
7:50 PM
Trump says framework of 'future deal' on Greenland reached after NATO talks as tariffs put on hold
New information:
- Trump says on Truth Social that, after a 'very productive meeting' with NATO Secretary General Mark Rutte, they have 'formed the framework of a future deal' on Greenland and 'the entire Arctic Region.'
- He explicitly states he will not impose the tariffs that were scheduled to go into effect on February 1, citing this understanding.
- Trump names Vice President JD Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff as the team that will lead follow‑on Greenland/Golden Dome negotiations and report directly to him.
7:38 PM
Trump backs off Greenland tariff threat based on new "solution"
New information:
- Trump publicly backs off his threat to impose new tariffs on eight European allies on Feb. 1 over their refusal to support his Greenland claims.
- He says he has agreed with NATO Secretary General Mark Rutte on the "framework of a future deal" covering Greenland and the broader Arctic, though no concrete terms are disclosed.
- Trump links the tariff reversal to this purported framework and assigns Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff to lead negotiations, reporting directly to him.
- He says "additional discussions" are underway about how his proposed $175 billion "Golden Dome" missile‑defense system would apply to Greenland.
- Financial markets stage a relief rally on the announcement, with the S&P 500 up nearly 1.5% and long‑term Treasury yields falling.
4:17 PM
Trump challenges Carney at Davos, asserts Canada should be 'grateful' for Golden Dome missile defense
New information:
- Trump told Davos attendees the U.S. is "building a Golden Dome" missile‑defense system that "by its very nature" will defend Canada and said Canada "gets a lot of freebies from us" and "should be grateful" but is not.
- He directly called out Canadian Prime Minister Mark Carney from the stage, telling him to "remember" that "Canada lives because of the United States" the next time Carney makes public statements.
- Treasury Secretary Scott Bessent said in a Davos CNBC interview that the administration has invited Ottawa to participate in the Golden Dome and pay its share, and the White House puts the system’s cost around $175 billion.
- The Congressional Budget Office previously estimated the space‑based interceptor portion of Golden Dome could cost between $161 billion and $542 billion over 20 years.
- Carney’s Davos speech warned that great powers are using economic and security leverage to coerce allies, urged 'middle powers' like Canada to diversify and defend sovereignty, and reaffirmed support for Greenland and Denmark’s right to determine Greenland’s future, signaling opposition to Trump’s Greenland pressure.
2:21 PM
Trump rips Europe at Davos for wrong 'direction,’ points to migration and spending
New information:
- Trump told the Davos plenary he no longer 'recognizes' Europe in a 'very negative way' and said it is 'not heading in the right direction.'
- He framed past Western economic policy as built on 'ever increasing government spending, unchecked mass migration, and endless foreign imports.'
- He said energy, trade, immigration and economic growth must now be 'central concerns to anyone who wants to see a strong and united West.'
12:18 PM
Newsom at Davos: Western alliance is "dormant, not dead"
New information:
- Newsom, speaking at Davos, told Axios the Western alliance is 'dormant, not dead' and said he is in Davos to present a different U.S. vision than Trump’s.
- He predicted that financial markets will be the only force likely to push Trump off his current Greenland and tariff course, citing a sell-off in U.S. assets after Trump threatened tariffs tied to acquiring Greenland.
- Newsom reiterated and elaborated on his criticism of European leaders, accusing them of being 'complicit,' 'rolling over' to Trump, and saying he 'should've brought a bunch of knee pads for all the world leaders,' while describing Trump as a 'T-Rex' who either 'mates with you or devours you.'
- Axios notes that Newsom’s high-profile Davos presence and foreign-policy rhetoric reinforce expectations he is positioning for a 2028 presidential run.
January 20, 2026
10:35 PM
Newsom warns ‘pathetic’ foreign leaders to grow a backbone in bizarre takedown likening Trump to a T.rex
New information:
- Newsom, at Davos, said foreign leaders are 'rolling over' for Trump and that he 'should have brought a bunch of kneepads for all the world leaders,' calling their behavior 'pathetic.'
- He attacked María Corina Machado’s highly controversial gesture of presenting her Nobel Peace Prize medal to Trump, saying Nobel Prizes 'are being given away' and calling it embarrassing from an American perspective.
- Newsom likened Trump’s diplomacy to a 'T‑Rex' that either mates with leaders or devours them, warning Europeans they could be 'devoured' if they don’t 'stand tall, stand firm, stand united' against his Greenland‑plus‑tariffs strategy.
- The piece reiterates that Trump has announced 10% tariffs on eight European countries starting Feb. 1, rising to 25% June 1 absent a Greenland deal, deepening tensions with NATO allies.
January 19, 2026
4:49 PM
Davos' elite World Economic Forum set to open with pro-business Trump set to attend and inequality on the rise
New information:
- Confirms Trump will make his third visit to Davos as president and is expected to loom large over the 2026 World Economic Forum meeting.
- Details this year’s WEF theme as “A spirit of dialogue” and notes the agenda includes inequality, AI’s impact on jobs, tariffs and eroding trust between countries.
- Specifies that EU Commission President Ursula von der Leyen and China’s Vice Premier He Lifeng will speak on the opening day, positioning them as counterweights to Trump’s agenda.
- Notes that Iranian Foreign Minister Abbas Araghchi’s planned appearance was canceled by WEF organizers due to Iran’s protest crackdown and 'tragic loss of civilian lives.'
- Reports this is the first Davos without founder Klaus Schwab in charge, with new co‑chairs including BlackRock CEO Larry Fink and Roche vice chair Andre Hoffman, and highlights Nvidia CEO Jensen Huang’s first‑time appearance.