Donald Trump has stepped back from a threat to impose new tariffs on several European countries after meeting NATO Secretary General Mark Rutte at the World Economic Forum in Davos, in what the US president described as a “framework” for a future arrangement concerning Greenland and Arctic security.

The move followed days of escalating tension between Washington and European capitals after Mr Trump renewed his long-stated interest in acquiring Greenland, the semi-autonomous Danish territory, and linked his push to economic pressure on allies. In Davos on 21 January, Mr Trump called for “immediate negotiations” towards a deal to acquire the island, while saying he would not use force.

European officials and diplomats have treated the tariff pause as tactical rather than definitive, noting that the administration has not published any formal text describing what has been agreed, who would be party to it, or how it would sit alongside existing US–Danish arrangements.

Denmark’s Prime Minister, Mette Frederiksen, has insisted that sovereignty is “not negotiable”, while saying Copenhagen is open to discussions on security, investment and the economy around Greenland within allied frameworks. Danish and NATO officials have also signalled that any talks must involve Greenland’s own government.

Mr Rutte told Reuters on 22 January that allies would need to increase NATO’s presence in the Arctic under the framework discussed with Mr Trump, and that military commanders would work through what additional security requirements would look like. He said negotiations over Greenland itself would continue between the United States, Denmark and Greenland.

The dispute has already spilled into trade. On 21 January, the European Parliament suspended work on an EU–US trade agreement reached at Turnberry, Scotland, in late July, citing Mr Trump’s demands over Greenland and his tariff threats. Bernd Lange, chair of the Parliament’s trade committee, said the threats had breached the Turnberry understanding, and the process would be put on hold “until further notice”.

The US president has presented Greenland as central to a wider security agenda, including a proposed “Golden Dome” missile defence programme, while also referring to access to critical minerals. After meeting Mr Rutte, Mr Trump said there could be a deal that satisfied his missile-defence aims and access to minerals while addressing what he describes as Russian and Chinese ambitions in the Arctic. Mr Rutte, however, said mineral exploitation was not discussed in his meeting with the president.

Mixed messages have added to the uncertainty. Mr Trump told Davos the urgency of negotiations “had nothing to do with rare earths”. Separately, White House press briefings have highlighted natural resources as part of Washington’s interest.

A central question is what changes, if any, would be made to the legal basis for US activity on the island. Greenland is already covered by a 1951 defence agreement between Washington and Copenhagen, and the current US presence is centred on the Pituffik Space Base. Reports this week have pointed to the possibility of reopening or updating that Cold War-era framework, potentially expanding US rights to operate facilities or designate “defence areas” without pursuing formal transfer of sovereignty.

Some media reports have suggested a model resembling the British Sovereign Base Areas in Cyprus, where the UK retained sovereign control over specific territories after Cypriot independence in 1960. Under such an approach, the United States would not acquire Greenland as a whole, but could seek a form of sovereign-use control over defined zones associated with military installations. No public document confirming such a structure has been issued, and Danish statements have rejected any compromise on overall sovereignty.

The episode has also drawn comment from Moscow. On 22 January, Vladimir Putin said Greenland’s ownership was “of no concern” to Russia and suggested the matter should be resolved between the United States and Denmark. He invoked historical land sales, including Alaska in 1867, and floated an estimated price tag of around $1 billion.

For European leaders, the immediate focus is whether the tariff pause develops into a stable negotiating track, or whether the dispute re-emerges as Mr Trump returns to public demands for control of the island. NATO officials have framed the Davos talks as a route to increased Arctic security planning, but the political and legal boundaries remain contested, and the EU’s trade process has already been interrupted.