After Threatening Europe, Trump Cancels Tariffs Over Greenland Standoff

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Published on Jan 22, 2026, 08:57 AM | 2 min read

New York: President Donald Trump on Wednesday withdrew his threat to impose tariffs on eight European countries, abruptly stepping back from a pressure campaign he had tied to demands for US control over Greenland. The reversal followed Trump’s claim that he had reached a “framework of a future deal” with NATO on Arctic security, though no details of the understanding were made public.


The tariffs, aimed at Denmark and seven other allies, were due to begin at 10 per cent next month and rise to 25 per cent by June. Trump had argued that US ownership of Greenland was essential for national security and for countering Russia and China in the Arctic. After NATO Secretary General Mark Rutte publicly assured him that the alliance would stand with the United States if attacked, Trump announced the tariffs would be scrapped.

While the immediate threat was lifted, Trump’s conduct has drawn widespread criticism. He openly demanded “right, title and ownership” of Greenland and suggested the US could use overwhelming force if it chose to do so, remarks that alarmed allies and raised fears of a serious rupture within NATO. At the World Economic Forum, he dismissed the demand as a minor favour owed to Washington, a characterisation many European leaders found insulting and dangerous.

Using tariffs against close allies to pursue territorial ambitions marked a sharp departure from established diplomatic norms. Greenland and Denmark firmly rejected the idea that the territory is for sale, while Greenland’s government went so far as to urge citizens to prepare for possible crises, underscoring the anxiety created by Trump’s rhetoric.


Trump’s sudden climbdown, paired with vague claims of a deal, reinforced a familiar pattern of escalation followed by retreat. Critics argue that while he may claim victory, the episode has weakened trust among allies and cast fresh doubt on the reliability of US leadership.



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