Trump abandons Greenland tariff threat at Davos The president announced he will not impose tariffs on eight European allies and will not pursue a military seizure of Greenland, reversing a weeks‑long stance after a Davos appearance [1][2]. He framed the change as part of a negotiated “framework” with NATO that could satisfy U.S. strategic goals in the Arctic [1][2]. The shift signals a pivot from brinkmanship toward diplomatic engagement on Greenland and broader security issues.

Equities bounce back after policy retreat The S&P 500, Dow Jones and Nasdaq each climbed roughly 1.2% following Trump’s remarks, erasing losses that had been the steepest since October [1][2]. Investors interpreted the tariff cancellation as reducing geopolitical risk and stabilizing the market outlook. Analysts noted that while rhetoric had strained NATO ties, the rapid market recovery suggests confidence that diplomatic damage can be repaired [1].

NATO and Denmark welcome new Arctic security framework NATO Secretary‑General Mark Rutte discussed a future Arctic security deal with Trump, pledging alliance support if the U.S. is attacked [1][2]. Danish Foreign Minister Lars Løkke Rasmussen praised the tariff cancellation and urged talks that respect Denmark’s sovereignty over Greenland [2]. The proposed framework includes discussions on the Golden Dome missile‑defense program, indicating a broader strategic alignment in the region.

Greenland prepares for possible fallout despite optimism Greenland’s government issued a crisis handbook and urged residents to stock up on supplies, reflecting cautious readiness for any disruption [2]. Nuuk locals such as Tony Jakobsen have begun hoarding essentials, while the population watches diplomatic developments closely. The preparation effort underscores lingering uncertainty even as diplomatic overtures improve.