Donald Trump drops tariffs threat as he strikes 'major Greenland deal' with NATO

Donald Trump has dropped his threat to impose tariffs (Image: Getty)

Donald Trump has sensationally announced he is dropping his threats to impose tariffs on the UK and other European allies after claiming to have reached a breakthrough with NATO over Greenland.

Earlier today, the US President launched an explosive outburst during a speech at the World Economic Forum in Davos, where he took aim at those opposing his plan to acquire the Arctic island. Just days ago, he threatened to impose tariffs on NATO allies - including the UK - if a deal over Greenland could not be reached by February 1. But in a sudden shift away from his recent threats, Mr Trump has now made a dramatic U-turn over the imposition of tariffs.

Taking to his Truth Social platform, Mr Trump wrote: "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.

"This solution, if consummated, will be a great one for the United States of America and all NATO Nations.

"Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st.

"Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress.

"Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others, as needed, will be responsible for the negotiations — they will report directly to me. Thank you for your attention to this matter!"

NATO chief Mark Rutte and Donald Trump hold talks in Davos (Image: Getty)

The US president had only earlier on Wednesday doubled down on his threats to secure the Arctic island, a self-governing territory of Nato ally Denmark, but ruled out the use of force to do so.

He has threatened eight NATO countries, including Britain, with new tariffs in response to their opposition to his ambitions for the mineral-rich territory.

Earlier today, the European Parliament said work on an EU-US trade deal had been halted amid tensions over Trump's plot to seize control of Greenland.

Bernd Lange, chair of Parliament’s International Trade Committee and standing rapporteur for the US, said the decision was taken following a meeting of political group representatives.