President Donald Trump announced Wednesday a “framework of a future deal” on Greenland has been reached and backed off on his threats of new tariffs on Europe following a meeting with Secretary General of NATO Mark Rutte in Davos, Switzerland.
“This solution, if consummated, will be a great one for the United States of America, and all NATO Nations,” Trump wrote in a post on Truth Social. He did not say whether the deal involves the United States’ acquisition of Greenland, a territory of Denmark.
Earlier Wednesday, Trump during his remarks at the World Economic Forum said he was seeking “immediate negotiations” to acquire Denmark’s Greenland territory and that he does not intend to use military force to gain control of the Arctic island.
“We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable, but I won’t do that,” Trump said.
Trump threatened to impose a 10% tariff on “any and all goods” imported to the U.S. from eight European countries, effective Feb. 1, if he doesn’t get his way. European officials say they are ready to push back, threatening a new trade war. Trump has said that the tariff would increase to 25% on June 1 if a deal to purchase the Arctic island is not reached.
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Stocks jumped after President Trump said on social media that he had reached the “framework” of a deal for Greenland and was abandoning plans for tariffs.
The broad S&P 500 gained 1.1% and was trading near 6,869, while the tech-heavy Nasdaq added nearly 260 points to trade near 23,212. The Dow was also up 1.1%, or 574 points. The safe haven of gold, which has touched fresh all-time highs recently, was up, but off earlier highs. The benchmark 10-year U.S. Treasury note fell nearly 3 basis points. Bond yields – interest rates – fall as prices rise, and vice versa.
– Andrea Riquier
President Donald Trump said the United States and NATO have agreed on the “framework of a future deal” regarding Greenland following a meeting with Secretary General of NATO Mark Rutte.
Trump did not say whether the deal involves the United States’ acquisition of Greenland, a territory of Denmark, as he’s long demanded.
Trump announced the development in a post on Truth Social, saying he’s decided to withhold tariffs on eight European countries that he had threatened if they did not back his push to acquire Greenland.
“This solution, if consummated, will be a great one for the United States of America, and all NATO Nations,” Trump said. “Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”
Trump said “additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress.”
He said Vice President JD Vance, Secretary of State Marco Rubio and Special Envoy Steve Witkoff will be involved in future negotiations.
– Joey Garrison
Mark Rutte, secretary general of NATO, affirmed in a meeting with Trump that NATO countries would come to the defense of the United States if it were ever attacked.
His comments came after Trump questioned whether the United States could count on the support of other NATO allies in his speech at the World Economic Forum in Davos.
“Let me tell you: They will,” Rutte said, pointing to NATO allies who supported the United States’ war in Afghanistan following the 9/11 terrorist attacks. “For every two Americans who paid the ultimate price, there was one soldier from another NATO country.
“So you can be assured, absolutely, if ever the US will be under attack, your allies will be with you.”
Trump, however, said he’s not sure that would be the case.
“Well, I hope that that’s true. He’s a good man. He’s never lied to me before,” Trump said. “We’ve had a good relationship, and he made that statement just now. But I just – when I see what’s happening with Greenland, I wonder. Because I want Greenland for security. I don’t want it for anything else.”
– Joey Garrison
Trump told reporters in Davos that Denmark could receive a reasonable price for Greenland but that the cost of peace and security would be much greater.
At a meeting with NATO Secretary General Mark Rutte, a reporter asked Trump if he could see a reasonable price for Greenland.
“I could see that,” Trump said.
But when asked how to calculate it, Trump said the bigger price is for international security. He said the goal is for Greenland to be part of the “golden dome” defense system to protect against enemy missiles.
“That’s really the price. And that’s the big price,” Trump said. “It’s going to be very expensive. And it’s better if we have Greenland than it is without.”
– Bart Jansen
With military off table, Republicans say Trump can negotiate US control of Greenland
Sen. Lindsey Graham, R-South Carolina, supported Trump’s move to take control of Greenland and that he “rightly removed” the military option of seizing the Arctic island.
“I am an enthusiastic supporter of providing the United States legal title to Greenland through a lawful and fair process,” Graham said on social media.
House Speaker Mike Johnson, R-Louisiana, told reporters it was right for Trump to highlight the strategic importance of Greenland. Johnson, who recently returned from a trip to the United Kingdom, said a resolution would be negotiated with European allies.
“It’s clear he’s focused on the strategic importance of Greenland,” Johnson said. “No one can dispute that. It’s as though he made this up. As we noted, presidents have been talking about this for more than 100 years – the importance, the strategic placement of Greenland.”
Johnson said Trump was right to highlight how control of Greenland would protect the United States from aggression from Russia and China.
“When I was across the pond, over in London, I encouraged our friends to continue to work with President Trump so we can find common ground and chart a path forward that protects the needs of the people of Greenland the needs of our collective security in the Arctic,” Johnson said. “I’m confident that we’ll work together to reach a solution that benefits both Europe and the U.S.”
– Bart Jansen
Trump calls Egypt ‘great’ on Gaza peace proposals
Trump met with Egypt’s President Abdel Fattah El-Sisi to discuss his peace talks about Gaza and his proposed Board of Peace to oversee its reconstruction.
Trump has invited numerous leaders of other countries to joint the board. He plans an event Jan. 22.
“Egypt has been great,” Trump said
– Bart Jansen
Markets stage relief rally after tame Trump speech
U.S. markets rallied Wednesday after Trump’s remarks seemed to preclude the use of force over Greenland. At noon in New York, the S&P 500 gained 0.4% to trade near 6,826, while the Nasdaq Composite added 0.2% to hover just over 23,000. The Dow Jones Industrial Average popped 365 points or 0.8% to about 48,853.
The 10-year U.S. Treasury note lost about 2 basis points to about 4.28%, while the VIX, an index that tracks market volatility and is often referred to as Wall Street’s “fear gauge,” fell more than 10%.
Precious metals prices were mixed, with gold up 1.7% and silver down 1.2%. The metals are often used as a hedge against geopolitical upheaval. They exist independently of any particular country or company or central bank, and because they are less dependent on economic growth than assets like stocks or bonds.
In the year to date, the S&P 500 is down fractionally, though it was up 15.7% in Trump’s first year in office. That lags the 24.1% it rose during the first year of his first term.
During President Joe Biden’s first year, it gained 19.3%. The broad index is often seen as one of the most representative snapshots of the market as a whole, while the Nasdaq is more focused on tech stocks and the Dow more weighted toward old-economy companies like industrials and financials.
– Andrea Riquier
Europe abandons US trade deal because of Trump’s Greenland tariffs
The European Parliament suspended its work on a trade deal between the 27-member bloc and the United States because of Trump’s repeated requests to take control of Greenland.
Trump imposed tariffs on Europe of 15% last year, under a deal struck in Turnberry, Scotland. But he threatened further 10% tariffs on eight countries starting Feb. 1 unless Denmark agrees to give control of its territory Greenland to the United States.
Bernd Lange, a member of the European trade committee, told reporters Jan. 21 that a meeting planned Jan. 26 and 27 to work toward a trade deal was postponed indefinitely because Trump’s new tariff threat had broken the Turnberry deal.
– Bart Jansen and Reuters
Next nominee for Federal Reserve chair to be announced soon
With Jay Powell’s time as Federal Reserve chairman coming to an end, Trump said he’d be announcing his nominee soon.
“I’ll be announcing a new fed chairman in the not too distant future,” Trump said.
Trump slipped up and gave a hint to his choice: the president referred to the person as a he. Trump caught himself and acknowledged the person he selected is male.
– Bart Jansen and Francesca Chambers
Trump mocks Macron over indoor sunglasses
When world leaders were speaking at Davos, Donald Trump was watching.
He said during his own, lengthy address to the economic forum, that he saw French President Emmanuel Macron’s much-talked about remarks.
“I watched him yesterday with his beautiful sunglasses. What the hell happened,” Trump said to laughter in the room.
Macron wore blue-tinted aviators during his indoor speech. He is reportedly suffering from broken blood vessels in one of his eyes.
– Francesca Chambers
Trump says Putin, Zelenskyy ‘stupid’ if they don’t reach deal on Ukraine
Trump planned to meet Jan. 22 with Ukraine’s President Volodymy Zelenskyy and said a deal is “reasonably close” with Russia’s President Vladimir Putin to end their war.
Trump said there is an abnormal hatred between the leaders, but that the war has been a bloodbath that must end. When Putin has offered a resolution, Zelenskyy has rejected it and when Zelenskyy makes an offer Putin rejects it, Trump said.
“I think we’re reasonably close,” Trump said. “If they don’t, they’re stupid. That goes for both of them.”
“I don’t want to insult anyone but they have to get a deal done,” Trump added.
– Bart Jansen
Trump on clash with NATO: ‘They called me daddy’
Accidentally referring to Greenland as Iceland midway through his remarks, Trump recalled that over the summer, NATO Secretary-General Mark Rutte seemed to call him “daddy.”
“Until the last few days, when I told them about Iceland, they loved me. They called me daddy, right? Last time. A very smart man, said he’s our daddy. He’s running it. I was like running it. I went from running it to being a terrible human being.”
Rutte made the comment during a meeting with Trump at the alliance’s June summit. “Daddy has to sometimes use strong language,” Rutte said. The NATO leader said afterward that he was remarking on U.S. leadership and not Trump.
– Francesca Chambers
Trump to meet with Zelenskyy to discuss end to Russia-Ukraine war
Trump said he will also meet with Ukrainian President Volodymyr Zelenskyy while he’s in Davos as he seeks to end Russia’s war on the country, which will enter its fourth year at the end of February.
“I think he wants to make a deal,” Trump said. “They’ve got to get that war stopped, because too many people are dying.”
– Francesca Chambers
Trump rips Canada’s Carney in Davos rebuttal
Trump said he would build a golden dome over Greenland that would also defend Canada, another NATO ally that he cast as ungrateful.
“Canada gets a lot of freebies from us, by the way. They should grateful also, but they’re not,” Trump said.
Trump said he saw Canadian Prime Minister Mark Carney‘s speech at the international economic forum on Tuesday, before he arrived in Switzerland.
“I watched your prime minister yesterday. He wasn’t so grateful. But they should be grateful to us, Canada. Canada lives because of the United States. Remember that, Mark, the next time you make your statements.”
–Francesca Chambers
Trump appears to rule out force taking Greenland
President Donald Trump appeared to rule out taking Greenland by force in his Davos speech. “I’m seeking immediate negotiations to acquire Greenland,” Trump told leaders at the World Economic Forum event, adding, “We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable, but I won’t do that.”
“I don’t have to use force. I don’t want to use force. I won’t use force. All the United States is asking for is a place called Greenland, where we already had it, as a trustee, but respectfully returned it back to Denmark not long ago, after we defeated the Germans, the Japanese, the Italians and others in WWII. We gave it back to them. We are a powerful force then, but we are a much more powerful force now.”
– Kim Hjelmgaard and Francesca Chambers
Trump calls Greenland demand ‘a very small ask’
Trump argued to European political and business leaders that his demand for control of Greenland is a small request after U.S. contributions to the continent’s defense as part of NATO.
“What I’m asking for is a piece of ice, cold and poorly located that can play a vital role in world peace and world protection,” Trump said. “It’s a very small ask for what we’ve given them for many, many decades.”
– Bart Jansen
Trump tells European leaders only US can defend Greenland
Trump told European leaders the United States needs to acquire Greenland from Denmark for national security because it is the only country that could defend the Arctic island from enemies such as Russia and China.
“The fact is no nation or group of nations is in any position to be able to secure Greenland other than the United States,” Trump said.
Trump said Denmark fell to Germany in six hours at the start of World War II, but that the United States defended Greenland against invasion.
“We saved Greenland and successfully prevented our enemies from gaining a foothold in our hemisphere,” Trump said. “Without us, right now you’d all be speaking German and a little Japanese, perhaps.”
– Bart Jansen
Trump says Europe ‘not heading in the right direction’
Trump told political and business leaders at the World Economic Forum in Davos that Europe “is not heading in the right direction” and urged them to follow his lead.
“We can argue about it but there’s no argument,” Trump said.
Trump argued that in recent decades western leaders pursued policies of greater government spending, mass migration and endless foreign imports. Trump said his policies to close the U.S. border to illegal immigration and to impose tariffs on imports were predicted to cause a global recession and runaway inflation, but that unemployment and inflation have remained low.
“We have proven them wrong,” Trump said. “It’s actually just the opposite.”
– Bart Jansen
Trump notes ‘a few enemies’ at Davos
Trump opened his comments at the World Economic Forum in Davos with a joking reference to opposition among some in the audience of business and political leaders.
“So many friends, a few enemies,” he said to laughter.
– Bart Jansen
NATO Secretary General Mark Rutte told assembled business and political leaders in Davos that he’s concerned that the White House’s relentless focus on Greenland means Ukraine is being overlooked. Rutte was speaking on a panel at the World Economic Forum when he said he was “a little bit worried that we might drop the ball focusing so much on these other issues.”
He pointed out that Russia has been increasing its attacks on Ukraine nearly four years into Moscow’s invasion. “They need our support now, tomorrow, and the day after,” Rutte said of Ukraine. “I need European allies to keep focus on this issue.”
The Financial Times has reported that an $800 billion support and prosperity package for Ukraine that had been due to be finalized at the mountain summit between Ukraine, Europe and the U.S. has been put on hold because of the intense wrangling over Greenland.
– Kim Hjelmgaard
Trump address will hit on seizure of Maduro and Greenland
President Donald Trump’s will use his address in Davos to set his intentions for the year ahead. They include robust focus on and intervention in the western hemisphere.
A senior U.S. official told reporters traveling with Trump to Switzerland that the speech will have an America First feel and the U.S. attack on Venezuela and capture of its leader, Nicolas Maduro, would be a topic. The U.S. cut a deal with Venezuela’s interim government to sell the nation’s crude oil, which the Trump administration hopes will bring gas prices down.
Trump will also raise his push to acquire Greenland from NATO ally Denmark, the official said.
– Francesca Chambers
Canada’s Carney warns of ‘rupture’ in international order
Canadian Prime Minister Mark Carney told the World Economic Forum in Davos that as great powers such as the United States wield their might for advantage, middling powers such as Canada must adopt to find new international arrangements.
“We are in the midst of a rupture, not a transition,” Carney said. “Great powers have begun using economic integration as weapons.”
Carney never mentioned Trump in his 15-minute speech. But Canada was among the first countries to “hear the wakeup call” of Trump’s tariffs, Carney said, and remains in negotiations for a new trade deal.
“You cannot live within the lie of mutual benefit through integration when integration becomes the source of your subordination,” Carney said.
Meanwhile, Carney said Canada is in the midst of doubling its defense spending over the next decade. He has reached 12 trade and security deals on four continents in six months, with new strategic partnerships with China and Qatar.
Canada remains a supporter of Ukraine in its war with Russia and stands “fully behind” Denmark and Greenland in determining the island’s future, Carney said to applause.
“We understand that this rupture calls for more than adaption,” Carney said. “Nostalgia is not a strategy.”
– Bart Jansen
Trump arriving in Davos by helicopter shortly
President Donald Trump has arrived in Switzerland and was expected to be roughly on time for his 2:30 PM CET speech at the World Economic Forum in Davos, despite a later than intended departure from the U.S. after the Air Force One experienced electrical difficulty.
Following the president’s speech, he’ll meet with world leaders.
– Francesca Chambers
The last major expansion of U.S. territory was in 1959, when Alaska and Hawaii became the 49th and 50th states under Republican President Dwight Eisenhower. Trump is also expected in his speech in Davos to talk about the U.S. economy. Prior to leaving for Switzerland, Trump said he had “a lot of meetings” planned in Davos to discuss Greenland and he struck an optimistic tone that an agreement could eventually be made.
“I think we will work something out where NATO is going to be very happy and where we’re going to be very happy. But we need it for security purposes. We need it for national security,” he said.
Trump was running late to attend the global gathering of business, government and cultural elites because of an electrical issue with Air Force One. Amid European anxiety over Greenland, U.S. Treasury Secretary Scott Bessent, who is already in Davos, said on Jan. 21: “Why doesn’t Europe just sit down and wait for Trump to address them?”
Bessent also appeared to brand Denmark as “irrelevant” in connection with a Deutsche Bank analyst’s report that was picked up in the Financial Times newspaper that suggested Europe might be less inclined to keep buying U.S. government debt if the Greenland issue is not resolved.
“The size of Denmark’s investment in U.S. Treasury bonds, like Denmark itself, is irrelevant,” Bessent told reporters in Davos on the sidelines of the event. “It is less than $100m. They’ve been selling treasuries for years. I’m not concerned at all.”
Global stock markets fell for a fourth consecutive day and some measures of market stress remained high after a rout in global bonds a day earlier as Trump’s threats to acquire Greenland kept investors on edge.