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Why Trump Quietly Backed Away From His Greenland Tariff Threat

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Why Trump Quietly Backed Away From His Greenland Tariff Threat

Davos, Switzerland – U.S. President Donald Trump has quietly reversed course on Greenland after weeks of tough rhetoric.

Trump had threatened tariffs on Denmark and European allies.
He used the pressure to push U.S. strategic interests in Greenland.

Greenland is an autonomous Danish territory.
It holds major importance for Arctic security and natural resources.

The Tariff Threat

Trump warned of tariffs ranging from 10 to 25 percent.
He aimed the threat at Denmark and other NATO allies.

The move caused alarm across Europe.
Officials feared serious damage to transatlantic trade relations.

Denmark strongly rejected any suggestion of selling or transferring Greenland.
Greenland’s leaders also dismissed U.S. pressure.

The Sudden Shift

At the World Economic Forum in Davos, Trump softened his position.
He said the United States would not pursue tariffs.

Trump also ruled out the use of force.
He pointed to a new “framework” for Arctic cooperation with NATO.

The announcement marked a sharp shift in tone.
No detailed terms of the framework were shared.

Why Trump Backed Down

European leaders pushed back hard against the tariff threat.
They warned it could fracture NATO unity.

Legal experts also raised concerns.
U.S. courts may limit presidential tariff powers.

Market uncertainty added more pressure.
Investors reacted nervously to the escalating rhetoric.

NATO officials worked behind the scenes to calm tensions.
Diplomatic talks focused on Arctic defence cooperation instead.

European and Arctic Response

Denmark welcomed the reversal but remained cautious.
Officials stressed Greenland’s sovereignty remains non-negotiable.

Greenland’s government reaffirmed its right to self-determination.
Local leaders rejected outside pressure over territory or resources.

European Union leaders called for clearer rules with Washington.
Some urged stronger coordination against future trade threats.

What Comes Next

NATO members will continue talks on Arctic security.
The alliance aims to manage competition in the region.

Trump’s retreat eased immediate tensions.
However, uncertainty around future U.S. trade tactics remains.

Analysts say the episode highlights limits to aggressive diplomacy.
Allies may resist when pressure threatens core sovereignty.

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