At Davos, Trump drops Europe tariff threat over Greenland, strikes conciliatory note on India

US President Donald Trump has said he is abandoning plans to impose tariffs on several European countries, citing what he described as a newly agreed framework with NATO on Arctic security.

Speaking briefly to reporters on the sidelines of the World Economic Forum in Davos on Wednesday, Trump said the agreement would be made public soon.

“The deal is going to be put out pretty soon. It gets us everything we needed to get,” he said, calling it “a great deal for everybody”.

The president said the framework related to Greenland and the wider Arctic, adding that while details were still being worked out, it would be “really fantastic for the USA”.

When asked how long it would last, Trump said it was long term, describing it as “an infinite deal”.

The abrupt about-face came shortly after the president told delegates in Davos that he wanted to “get Greenland, including right, title and ownership”.

He, however, said the US would not use force to pursue control of the territory.

He described the landmass as “cold and poorly located”, while arguing that the US had effectively saved Europe during World War II.

“It’s a very small ask compared to what we have given them for many, many decades,” Trump said of NATO, while insisting he would not use military force to secure Greenland.

“I don’t have to, and I don’t want to use force,” he added.

Asked what price the US might pay for Greenland, Trump declined to put a figure on it. “There’s a bigger price, and that’s the price of safety and security and national security,” he said.

NATO was founded by European nations and Canada, all of which have repeatedly said Greenland is not for sale and cannot be taken from Denmark.

Trump has spent weeks arguing that Washington should control the territory to counter perceived threats from Russia and China in Arctic sea routes.

US stocks rebounded after the president dropped the tariff threat, with major indices rising about 1.2% on Wednesday.

Trump on India-US trade deal

Trump also struck a conciliatory note on the tariff stand-off with India.

The US President said he has great respect for his "friend" Prime Minister Narendra Modi and they are going to have a good trade deal.

"I have great respect for your Prime Minister. He's a fantastic man and a friend of mine. We are going to have a good deal," Moneycontrol quoted Trump as saying.

Russia-Ukraine war

He also said he believed he was “reasonably close” to an agreement to end the war between Russia and Ukraine.

Trump said both Vladimir Putin and Volodymyr Zelenskyy wanted a deal, warning that failing to end the conflict would be “stupid” given the scale of loss of life.

“It’s a bloodbath,” he said. “Too many people are dying. It’s not worth it.”