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President Donald Trump reversed course Wednesday on planned tariffs tied to opposition to his annexation of Greenland, announcing they will be canceled after what he described as a breakthrough understanding with NATO leadership, just hours after the administration publicly ruled out the use of military force over the Arctic territory.

Speaking earlier Wednesday at the World Economic Forum in Davos, U.S. officials emphasized that Washington was not considering military action regarding Greenland, seeking to tamp down international concern after weeks of heightened rhetoric surrounding U.S. interests in the Arctic.

Later the same day, Trump said on social media the tariffs scheduled to take effect February 1 would no longer be imposed following an unexplained “understanding” reached with NATO Secretary General Mark Rutte. Trump said the talks produced a framework for a broader agreement concerning Greenland and the Arctic region as a whole, though he did not disclose specific terms.

“Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote. “Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

The abrupt reversal marks a notable de-escalation after tariffs were floated as leverage amid tensions over Arctic security, resources, and strategic positioning. The nature of the agreement remains unclear, and no formal commitments have yet been announced by NATO or Denmark, which maintains sovereignty over Greenland.

Trump added that additional discussions are underway regarding the “Golden Dome” missile defense initiative as it relates to Greenland, signaling that security cooperation remains central to the talks despite the tariff rollback.

The president said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and other officials will lead negotiations going forward and report directly to him as discussions continue.