US President drops Greenland-linked tariffs after talks with NATO, signals shift in tone
January 22, 2026: On the second day of the World Economic Forum summit in Davos, US President Donald Trump announced the formation of the ‘Board of Peace’, a new international body aimed at resolving global conflicts. Several world leaders joined Trump on stage for the launch and signed the charter establishing the board. Trump is also scheduled to meet Ukrainian President Volodymyr Zelensky to discuss the possibility of a ceasefire in Ukraine.
In a significant policy shift, Trump withdrew tariffs of up to 25 per cent that he had threatened to impose on Denmark and several European allies over Greenland-related issues. The decision followed talks with NATO Secretary-General Mark Rutte, after which Trump said the two had agreed on a “framework of a future deal” focused on Arctic security. NATO confirmed that discussions centred on maintaining stability in the Arctic, while clarifying that Greenland’s status within Denmark was not part of the talks.
Trump’s earlier remarks on US ownership of Greenland had sparked sharp backlash in Europe and triggered one of the most serious transatlantic tensions in decades. His softened stance has brought relief in Denmark, with Foreign Minister Lars Lokke Rasmussen calling the pause in trade tensions a positive development. Meanwhile, the European Union has put a planned US-EU trade agreement on hold, with EU lawmakers citing concerns over threats to the sovereignty of a member state and the use of tariffs as political pressure.