(The Center Square) – President Donald Trump said Thursday a deal structure regarding Greenland is developing after he stepped back from threatened tariffs on European allies, which he previously linked to Denmark handing over control of the semi-autonomous Arctic island.
Danish officials say Greenland's sovereignty is non-negotiable. Trump, however, asserts that an agreement is being worked on, but he gave no additional details.
"The Greenland structure is being worked on, and will be amazing for the U.S.A.," Trump wrote in a social media post while flying back to Washington, D.C., on Air Force One.
Trump's comments come after he announced a "framework" for a future deal on Greenland with NATO Secretary General Mark Rutte on Wednesday in Davos, Switzerland. NATO is a 32-nation political and military alliance that includes the U.S. and much of Europe, including Denmark.
Rutte told reporters Thursday that the agreement involved heightened NATO security in the Arctic.
Trump backed off from threatened tariffs after meeting with Rutte.
Over the weekend, Trump warned that NATO allies who opposed his plans to acquire Greenland would face escalating tariffs: a 10% duty on all exports to the U.S. from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland beginning Feb. 1, rising to 25% by June 1. Trump said the tariffs will remain in effect until Denmark hands over Greenland.
Danish Prime Minister Mette Frederiksen said the two countries can talk, but Denmark and Greenland will remain sovereign.
"We can negotiate on everything political: security, investments, economy. But we cannot negotiate on our sovereignty," she said in a statement.
She added: "Only Denmark and Greenland themselves can make decisions on issues concerning Denmark and Greenland."
German Chancellor Friedrich Merz welcomed the change.
"It is good news that we are making steps in that right direction," he said.
U.S. Rep. Don Bacon, R-Neb., questioned Trump's diplomatic efforts.
"We had an opportunity to add bases in Greenland without all the drama, hostility, and threats," he said. "Denmark and Greenland would have welcomed a friendly discussion. This has damaged our relationships with allies, including the most successful alliance in history."
Trump maintains that U.S. ownership of Greenland is crucial to national security. He argues that Denmark cannot protect the island's mineral-rich territory from major powers such as China and Russia.
Public polling shows Greenlanders overwhelmingly oppose joining America.
Experts say as ice melts in the Arctic, more shipping and military ship routes could open in the region, changing the global trade and the defensive relationship between the U.S. and Russia. More mining and drilling exploration could also open up.
Buying the nation could cost U.S. taxpayers billions or trillions, depending on how the Arctic island is valued.
Greenland is almost entirely reliant on fishing and Danish subsidies of about $1 billion a year. Earlier this month, Denmark's central bank found Greenland faces "challenges for public finances in the form of large deficits and a long-term sustainability problem."
