Trump's Greenland Reversal: New Arctic Deal in Sight

U.S. President Donald Trump walked back his tariff threats over Greenland. He announced a potential deal with NATO allies to enhance security and mineral access in the Arctic, avoiding tensions and maintaining Danish sovereignty. The move lifted global financial markets, easing fears of a trade conflict.

In a surprising diplomatic pivot, U.S. President Donald Trump backed away from imposing tariffs on Denmark as leverage to acquire Greenland. Speaking at the World Economic Forum in Davos, Trump announced a new deal involving NATO allies to bolster Arctic security and resource access, while diplomatically maintaining Danish sovereignty.

"This deal is mutually beneficial," Trump stated, referring to the agreement forged with NATO Secretary General Mark Rutte. The deal aims to safeguard regional security and secure mineral rights, while countering Russian and Chinese influence in Greenland. Trump emphasized that the agreement has long-term benefits.

Denmark, while welcoming diplomatic routes over social media broadcasts, stressed the importance of Greenland's self-determination. Meanwhile, the U.S. financial markets responded positively to Trump's shift in strategy, witnessing a rise in the S&P 500 index by 1.2%.

(With inputs from agencies.)