U.S. President Donald Trump attends a bilateral meeting with NATO Secretary General Mark Rutte on the sidelines of the World Economic Forum (WEF) Annual Meeting on January 21, 2026 in Davos, Switzerland.
Chip Somodevilla | Getty Images
U.S. President Donald Trump announced Wednesday that he and NATO Secretary General Mark Rutte have agreed on what he called a “framework of a future deal” involving Greenland, prompting him to pull back threatened tariffs on European countries that were set to take effect Feb. 1.
Details, for now, remain elusive. Trump described the framework as more of a “concept” in an interview with CNBC’s Joe Kernen, saying it would involve U.S.-European collaboration on a proposed Golden Dome missile defense system and access to mineral resources in Greenland.
The relief expressed by European leaders was swift and palpable.
Danish Foreign Minister Lars Lokke Rasmussen said on X that the day is “ending on a better note than it began” — though he added that Denmark’s “red lines” should be respected.
Netherlands Prime Minister Dick Schoof and Italian Prime Minister Giorgia Meloni, while welcoming the news, also urged continued cooperation between allied nations.
The “sell America” trade that rattled investors earlier this week quickly reversed on the news. U.S. stocks shot up Wednesday stateside, with major indexes climbing more than 1% by the close, while the 10-year Treasury yield fell and the U.S. dollar index strengthened.
Other topics Trump discussed with CNBC include his pick for the next Federal Reserve chair, U.S. involvement in Iran and his push to cap interest rates on credit cards.
The developments capped off a striking day at Davos, whose theme this year was “A Spirit of Dialogue,” even as discussions across the conference were dominated by frayed alliances and geopolitical tension.
But the story isn’t over yet. The European Council is having an extraordinary meeting Thursday, while Trump is set to participate in a Board of Peace ceremony the same day.
European tariffs may have been averted in the nick of time, but the clock is still ticking on other issues.
— CNBC’s Kevin Breuninger contributed to this report.
What you need to know today
U.S. has a Greenland deal ‘framework’: Trump. The U.S. president said Wednesday he and NATO Secretary General Mark Rutte have formed a “framework of a future deal with respect to Greenland,” prompting him to call off threatened tariffs on European countries.
European Council meeting and Trump’s Board of Peace ceremony. Even though tariffs are off the table, European nations will still convene on Thursday to discuss the U.S.’ recent overtures. Separately, Trump will be having a Board of Peace ceremony the same day.
OpenAI looks for Middle East investments. The Sam Altman-led firm is in talks with sovereign wealth funds in the Middle East to try to secure investments for a funding round expected to total around $50 billion, CNBC confirmed on Wednesday
U.S. stocks rebound as Trump retracts tariffs. Major U.S. indexes popped more than 1% on Wednesday, led by tech stocks. Asia-Pacific markets rose Thursday, with South Korea’s Kospi topping the 5,000 mark for the first time during intraday trading.
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