Published by Global Banking & Finance Review®
Posted on January 22, 2026
5 min readLast updated: January 22, 2026
Add as preferred source on GoogleTrump's retreat on Greenland tariffs eases tensions but leaves uncertainty in transatlantic relations, affecting NATO and European markets.
By Mark John, Susan Heavey and Stine Jacobsen
DAVOS, Switzerland/COPENHAGEN, Jan 22 (Reuters) - President Donald Trump on Thursday said he had secured total and permanent U.S. access to Greenland in a deal with NATO, whose head said allies would have to step up their commitment to Arctic security to ward off threats from Russia and China.
News of a framework deal came as Trump backed off tariff threats and ruled out taking Greenland by force, bringing a degree of respite in what was brewing to be the biggest rupture in transatlantic ties in decades.
But the details of any agreement were unclear and Denmark insisted its sovereignty over the island was not up for discussion. Denmark's foreign ministry did not immediately respond to a request for comment on Trump's latest comments.
Trump's U-turn had triggered a rebound in European markets but also raised questions about how much damage had already been done to transatlantic ties and business confidence.
"It's really being negotiated now, the details of it. But essentially it's total access. It's - there's no end, there's no time limit," Trump told Fox Business Network in an interview from Davos, where he is attending the World Economic Forum.
Rutte told Reuters in an interview in Davos that it was now up to NATO's senior commanders to work through the details of extra security requirements.
"I have no doubt we can do this quite fast. Certainly I would hope for 2026, I hope even early in 2026," he said.
DENMARK SAYS SITUATION REMAINS DIFFICULT
Trump's ambition to wrest sovereignty over Greenland from fellow NATO member Denmark has threatened to blow apart the alliance that underpinned Western security since the end of World War Two, and reignite a trade war with Europe.
Danish Prime Minister Mette Frederiksen said no negotiations had been held with NATO regarding the sovereignty of Greenland, a semi-autonomous territory of Denmark.
"It is still a difficult and serious situation, but progress has also been made in the sense that we have now got things where they need to be. Namely that we can discuss how we promote common security in the Arctic region," Frederiksen said.
After meeting with Rutte, Trump had earlier said there could be a deal that satisfies his desire for a missile-defense system and access to critical minerals while blocking what he says are Russia and China's ambitions in the Arctic.
Rutte said minerals exploitation was not discussed during his meeting with Trump, adding that specific negotiations on the Arctic island would continue between the United States, Denmark and Greenland itself.
A 1951 agreement between the United States and Denmark established the U.S. right to construct military bases in Greenland and move around freely in Greenlandic territory. This is still the case as long as Denmark and Greenland are informed of its actions.
WORRIES ON FUTURE OF TRANSATLANTIC TIES
However, diplomats told Reuters that European Union leaders will rethink relations with the U.S. as the Greenland episode has badly shaken confidence in the transatlantic relationship.
EU governments remain wary of another change of mind from the U.S. president, who is increasingly seen as a bully Europe will have to stand up to.
"Trump crossed the Rubicon. He might do it again. There is no coming back to what it was. And leaders will discuss it," one EU diplomat said, adding the EU needed to find an alternative to its dependence on the United States in many areas.
There were also mixed feelings among some residents in the Greenland capital, Nuuk.
"I'm very thrilled to hear that, first of all, because he has been saying a lot of stuff about taking Greenland with force, like he'll do it the hard way, which is so scary to hear," said Ivi Luna Olsen, a tour guide.
"But I'm also like keeping my hopes down and still, like, hoping for the best and preparing for the worst because sometimes he can be saying a lot of stuff."
SWEDEN SAYS EUROPE GETTING USED TO US RHETORIC
Swedish Prime Minister Ulf Kristersson told a press conference Sweden wants to be part of an increasing allied military presence in Greenland and the Arctic.
"This new rhetoric from the U.S., we are starting to get used to it, but we also have to speak out when we think it is completely unreasonable, and I think we and other European countries did that, and I think it had an effect," he said.
Addressing the issue for the first time in public, President Vladimir Putin said that Greenland's ownership was not Russia's concern, while China's foreign ministry said on Thursday that "the so-called China threat" to Greenland was groundless.
Trump's push to seize Greenland had threatened to renew trade tensions with Europe and some business groups remain wary.
"What President Trump announces today may be obsolete tomorrow," Dirk Jandura, president of Germany's wholesale and export association BGA, told Reuters.
"The ongoing unpredictability is causing lasting damage to confidence in trade relations and remains a serious risk to the global economy."
(Reporting by Susan Heavey, Mark John, Janis Laizans, Jan Strupczewski, Lili Bayer, Andrew Gray, Steve Holland, Trevor Hunnicutt, Alessandro Parodi, Benoit Van Overstraeten, Stine Jacobsen, Anna Ringstrom, Markus Wacket, Sarah Marsh, Madeline Chambers, Christian Kraemer; writing by Matthias Williams; Editing by Sharon Singleton)
NATO, or the North Atlantic Treaty Organization, is a military alliance of countries from North America and Europe established for mutual defense against aggression.
Economic growth is an increase in the production of goods and services in an economy over a period of time, often measured by GDP.
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