Trump Rules Out Europe Tariffs Over Greenland Dispute With Denmark

By Global Leaders Insights Team | Jan 22, 2026

US President Donald Trump said he will not impose trade tariffs on European countries, including Denmark, amid disagreements linked to Greenland dispute, easing tensions that had escalated following earlier threats.

Speaking during the World Economic Forum Davos, Trump said tariff measures planned against several European nations would be dropped after discussions with allies. He stated that talks had resulted in a preliminary framework addressing concerns related to Arctic security, removing the need for economic pressure.

The proposed tariffs, which were expected to take effect on February 1, would have targeted imports from Denmark and other European countries. Trump had earlier linked the measures to what he described as Europe’s resistance to greater US influence in Greenland, a strategically located Arctic territory under Danish sovereignty.

  • Donald Trump drops Europe tariff threat amid Greenland dispute
  • Trump says talks with allies eased tensions over Denmark and Greenland
  • Davos discussions avert US–Europe trade clash over Arctic security

Trump said the United States views Greenland as critical to its national security and global security interests, citing increased activity in the Arctic by Russia and China. However, he clarified that Washington would not pursue military action to gain control of the territory and would rely on diplomatic and security cooperation instead.

Following meetings with NATO Secretary General Mark Rutte, Trump said both sides agreed to continue discussions on Arctic defence, infrastructure, and strategic coordination. He described the talks as constructive and said they helped prevent a transatlantic trade conflict between long-standing allies.

European leaders have consistently rejected any suggestion that Greenland could be transferred or sold, stressing that the territory’s future rests with its people. Denmark has repeatedly underlined that Greenland’s sovereignty and autonomy are non-negotiable.

The decision to withdraw the tariff threat has reduced immediate strain on transatlantic relations and calmed concerns among exporters and financial markets. However, the episode has renewed debate over Arctic geopolitics, US strategic ambitions, and how economic tools are used in diplomatic negotiations between allies.

Also Read: Spain Pushes EU Joint Army as Greenland Dispute Raises Tensions

While the tariff issue has been defused for now, discussions on Greenland’s strategic role and Arctic security are expected to continue in the coming months.