Trump Backs Off Tariffs, Announces Greenland–Arctic Deal

Framework agreement with NATO Secretary General Mark Rutte on missile defence and mineral extraction, as Trump speaks of permanent cooperation, Cyprus model referenced

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US President Donald Trump said the United States and its European allies will cooperate on both missile defence and mineral extraction in Greenland, following a draft agreement reached with Mark Rutte, the Secretary General of NATO.

According to Trump, the agreement will apply not only to Greenland but to the entire Arctic region and will be of unlimited duration.

Trump to CNBC: “They will participate in minerals and the Golden Dome”

In an interview with CNBC, Trump said European allies would take part both in the “Golden Dome” missile defence system and in mineral extraction rights in Greenland.

“They will participate in the Golden Dome and they will participate in mineral rights, just like us,” he said.

Asked about the duration of the agreement, Trump replied: “Forever.” He described the arrangement as “a very good deal for the United States and for them as well”, while acknowledging that it is “a bit complicated” and that details would be announced at a later stage.

Announcement from Davos: Framework for Greenland and the Arctic

A few hours after meeting Rutte on the sidelines of the World Economic Forum in Davos, Trump announced via Truth Social that the two sides had reached a framework for a future agreement covering “Greenland and, in reality, the entire Arctic region”.

He said that once finalised, the agreement would be “extremely beneficial for the United States and for all NATO member states”. Trump also confirmed that, on the basis of this understanding, the tariffs that were due to come into force on 1 February would not be imposed, a development that contributed to improved market sentiment.

The “Golden Dome” and next steps

Trump said further discussions are under way on how the Golden Dome programme will be linked to Greenland, adding that more information would be released as talks progress. Responsibility for negotiations will lie with the US Vice President, the Secretary of State, the special envoy and other senior officials, all reporting directly to him.

Speaking to reporters in Davos, Trump said the agreement would be presented “relatively soon”, noting that while talks are ongoing, they are already advanced and “give us everything we needed”.

Danish reactions and pointed remarks

During a press exchange, Trump was asked about comments by Denmark’s foreign minister rejecting any discussion of US acquisition of Greenland. Trump said he did not like receiving information “second-hand” and added that if there was disagreement, he would prefer to hear it directly.

Asked when he would discuss the matter with Denmark, Trump said he would speak with Mark Rutte, adding pointedly: “He is, frankly, more important.”

A deal with geopolitical weight

As described by Trump, the draft agreement combines defence, mineral resources and geopolitical influence in the Arctic. The prospect of permanent cooperation on missile defence and Greenland’s mineral wealth is expected to generate friction with Copenhagen and to test internal NATO balances in a region of growing strategic importance.

New York Times: British Bases in Cyprus Model Floated for Potential US Bases in Greenland

According to a report by The New York Times, discussions held on the sidelines of NATO meetings examined a scenario under which the United States could establish military bases in Greenland by acquiring limited sovereignty over small tracts of land, modelled on the British sovereign base areas in Cyprus.

Officials who took part in NATO meetings told the newspaper that the idea was raised during informal talks among senior military figures, though it remains unclear whether it forms part of any formal agreement.

Cyprus model referenced

The New York Times reports that one official involved in the discussions explicitly compared the concept to the UK’s sovereign base areas in Cyprus, which are considered British territory. A second official briefed on the talks confirmed that the Greenland proposal was indeed inspired by the Cyprus precedent.

The discussions reportedly took place on the margins of high-level NATO military meetings in Brussels. The newspaper stresses that it is not known whether this sovereignty-based model is included in the framework announced by Donald Trump regarding Greenland.

NATO response and Danish concerns

Asked to comment on the substance of the talks, NATO said that negotiations between Denmark, Greenland, and the United States would continue, with the stated aim of ensuring that Russia and China do not gain an economic or military foothold on the island.

NATO Secretary General Mark Rutte did not provide further details. A spokesperson said he had not proposed any compromise on sovereignty during his meeting with the US president.

The New York Times concludes that the discussions remain ongoing and that any comparison with the British bases in Cyprus reflects, at this stage, a hypothetical scenario rather than an agreed solution.

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