Markets rallied after President Trump dramatically dropped his tariff threat against the eight European countries he accused of trying to thwart his Greenland ambitions.
After telling the World Economic Forum in Davos that he would not use force to take Greenland he said he will not be imposing tariffs that were scheduled to go into effect on 1 February.
In a post on Truth Social he said, based upon a “very productive meeting” with the Secretary General of Nato Mark Rutte they “have formed the framework of a future deal with respect to Greenland”. Details of the deal were not clear.
He said: “This solution, if consummated, will be a great one for the United States of America, and all Nato Nations.
“Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland.
“Further information will be made available as discussions progress. Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others, as needed, will be responsible for the negotiations — They will report directly to me. Thank you for your attention to this matter!”
After suffering their worst day since October on Tuesday, US equity markets opened sharply higher and gained further impetus later in the session.
The S&P 500 was 1.5% higher while the technology-focused Nasdaq Composite index was up 1.7%.
Denmark had long said that it was only too happy to see an increased American military presence on Greenland which now seems to be the likely outcome.
Conservative leader Kemi Badenoch said: “This will be a relief to businesses who are already facing so many challenges.
“It is also good to hear Trump rule out the use of force in Greenland. Greenland’s future must be decided by its people.”
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