President Donald Trump announced on January 21 that the United States had reached "the framework of a future deal" regarding Greenland following his meeting with NATO Secretary-General Mark Rutte at the World Economic Forum in Davos, Switzerland. The announcement marked a significant shift from days of escalating tensions over the Arctic territory, though specifics of any agreement remained elusive as key parties expressed uncertainty about what had actually been decided.

"This solution, if consummated, will be a great one for the United States of America, and all NATO Nations," Trump wrote on Truth Social following his meeting with Rutte.

Trump subsequently withdrew his threat to impose 10 percent tariffs on eight European countries that had opposed his push to acquire Greenland, and he declared during his Davos address that the United States would not use military force to seize the territory. However, the precise terms of any framework remained a subject of confusion, with Danish and Greenlandic officials stating they had not been party to negotiations regarding sovereignty.

Terms of the Framework

Trump described the proposed arrangement in expansive terms during his return flight aboard Air Force One, telling reporters the deal would provide "total access" to Greenland for the United States with no payment required and no time constraints.

"There's no end, there's no time limit," Trump told Fox Business. "We're not doing a 99-year or a 10-year deal or anything else."

The president said the framework would grant broad U.S. military access to Greenland and allow for construction of the "Golden Dome" missile defense system, a network of sensors and weaponry designed to intercept cruise missiles, hypersonic missiles, ballistic missiles, and drones targeting the United States.

Sources familiar with the discussions told reporters that the framework calls for updates to the 1951 U.S.-Denmark treaty governing American military access on the island. That agreement established the United States' right to construct military bases in Greenland and move freely throughout Greenlandic territory, provided Denmark and Greenland are informed of such activities. Washington currently maintains a base at Pituffik in northern Greenland.

The framework reportedly includes provisions to prohibit Chinese and Russian investments in Greenland and would give the United States access to the island's rare earth minerals, which had previously been restricted by Danish environmental protections. Greenland ranks eighth globally in rare earth reserves, estimated at 1.5 million tons, and possesses significant deposits of copper, zinc, gold, tungsten, graphite, and iron ore.

A NATO spokesperson confirmed that discussions among allies would focus on "ensuring Arctic security through the collective efforts of Allies" and that negotiations between Denmark, Greenland, and the United States would proceed "aimed at ensuring that Russia and China never gain a foothold—economically or militarily—in Greenland."

Greenland and Denmark Assert Sovereignty

Despite Trump's characterization of the agreement as settled, Greenlandic Prime Minister Jens-Frederik Nielsen said he remained uncertain about the deal's contents and reiterated that sovereignty was non-negotiable.

"I don't know what there is in the agreement, or the deal, about my country," Nielsen told reporters in Nuuk on January 23. "We are ready to discuss a lot of things and we are ready to negotiate a better partnership and so on. But sovereignty is a red line."

Nielsen emphasized that Greenland must "respect our territorial integrity" and "respect international law and sovereignty."

Danish Prime Minister Mette Frederiksen said no negotiations had been held with NATO regarding Greenland's sovereignty, though she acknowledged progress had been made in shifting discussions toward Arctic security rather than territorial acquisition.

"We can negotiate on everything political, security, investments, economy," Frederiksen said in a statement. "But we cannot negotiate on our sovereignty."

Frederiksen called for "a permanent presence of NATO in the Arctic region, including around Greenland," and said Denmark remained "fully aware" of the kingdom's position throughout the discussions.

Ongoing Negotiations

Trump said Secretary of State Marco Rubio and Vice President JD Vance, along with special envoy Steve Witkoff, would lead continued discussions with Danish and Greenlandic counterparts. Rubio and Vance had met with the Danish and Greenlandic foreign ministers in Washington the previous week, though that meeting ended with Danish Foreign Minister Lars Løkke Rasmussen describing a "fundamental disagreement" between the parties.

Rutte told reporters in Davos that it was now up to NATO's senior commanders to work through the details of additional security requirements in the Arctic. "I have no doubt we can do this quite fast," Rutte said. "Certainly, I would hope for 2026, I hope even early in 2026."

A source familiar with the matter characterized what had been agreed as "a frame on which to build," adding that "anything being reported on specific details is speculative."

Marc Jacobsen, a professor at the Royal Danish Defence College, noted that the United States previously maintained 17 bases in Greenland during the Cold War with substantially greater activity than at present, all of which was permissible under the existing 1951 agreement.

"I think there will be concrete discussions about Golden Dome, and I think there will be concrete discussions about Russia and China not being welcome in Greenland," Jacobsen said.

European Response and Market Recovery

The announcement brought relief to financial markets that had been rattled by Trump's tariff threats. Wall Street had suffered its worst day since October earlier in the week, with the S&P 500 falling approximately 2.1 percent as investors assessed the risk of a transatlantic trade war.

European Union foreign policy chief Kaja Kallas said relations between the bloc and the United States had "taken a big blow" over the preceding week. EU leaders convened an emergency summit despite Trump's reversal, with diplomats indicating the episode had badly shaken confidence in transatlantic ties.

The European Parliament had announced it was formally halting implementation of a trade deal reached with Trump until threats over Greenland "ceased." With the tariff threat withdrawn, European Parliament President Roberta Metsola indicated the bloc would likely resume work on the agreement.

British Prime Minister Keir Starmer told Rutte that the United Kingdom stood ready to play its full part in ensuring Arctic security. Finnish President Alexander Stubb expressed hope that allies could assemble a plan to boost Arctic security by NATO's summit in Ankara scheduled for July.

China's Foreign Ministry responded to the Arctic discussions by calling claims that China poses a threat "baseless" and stating that Beijing opposes other countries using it "as an excuse" to advance their own agendas. China has maintained that its Arctic activities comply with international treaties and laws.