![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/01\/GettyImages-2255969940_14bfe3-e1769025523710.jpg?w=2048\")
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President Donald Trump seems to have found a \u201csolution\u201d to the Greenland crisis following talks with NATO leadership on Wednesday. He said he will back away from the threat to impose 10% tariffs on eight European allies \u2014 an announcement that had sparked a mass sell-off on Tuesday \u2014 that were set to take effect on Feb. 1.<\/p>\n
The reversal came only hours after Trump walked back an earlier threat to use force to secure Greenland during his World Economic Forum speech in Davos, Switzerland.<\/p>\n
\u201cWe have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,\u201d Trump wrote on Truth Social, adding that the plan would be \u201ca great one for the United States of America, and all NATO Nations.\u201d He said the tariffs would be shelved \u201cbased upon this understanding.\u201d<\/p>\n
The announcement followed a meeting with NATO Secretary General Mark Rutte, who has been seeking to defuse growing tensions between Washington and its European allies as Trump escalated rhetoric over Greenland\u2019s strategic importance. Trump also said on Truth Social that additional discussions were underway concerning what he called the \u201cGolden Dome\u201d initiative related to Greenland, without providing details.<\/p>\n
Markets reacted sharply to the apparent de-escalation. The S&P 500 rose 1.5% in afternoon trading, while long-term U.S. Treasury yields fell, signaling investor relief after days of volatility. Despite this pullback potentially confirming yet another instance of the \u201cTACO trade,\u201d or \u201cTrump Always Chickens Out,\u201d major questions remain over the substance of the framework.\u00a0<\/p>\n
Trump has repeatedly said that anything less than controlling all of Greenland is \u201cunacceptable.\u201d It\u2019s unclear, and seems unlikely, that the outline discussed with NATO leadership satisfies that particular condition, given that Denmark reiterated that it would not give up Greenland\u2019s sovereignty after Trump\u2019s speech on Wednesday.\u00a0<\/p>\n
In his Truth Social post, Trump said Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff would lead negotiations going forward and report directly to him.The announcement also comes after the EU suspended trade negotiations with the U.S. and suspended the trade agreement they have had in place since August. CATO scholar Kyle Handley, in a statement provided to Fortune<\/em>, wrote that the suspension should have never been seen as a \u201cdramatic breakdown,\u201d because \u201cthere was never a real deal to begin with.\u201d<\/p>\n \u201cWhat\u2019s unraveling now was a fragile, politically convenient set of press releases that papered over fundamental disagreements and was always vulnerable to executive-level tariff threats.\u201d<\/p>\n<\/div>\n #Trump #finds #solution #Greenland #crisis #backs #tariff #threats<\/p>\n","protected":false},"excerpt":{"rendered":" President Donald Trump seems t… <\/p>\n","protected":false},"author":1,"featured_media":14565,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[2166,3510,359,9404,486,840,5542,166,487,7387,3366,9929,497,409,599],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/14564"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14564"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/14564\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/14565"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}