President Donald Trump has said he no longer plans to impose tariffs on European countries that had opposed his ambitions for the US to acquire Greenland.
In a social media post, Trump said his decision followed a very productive meeting with Nato Secretary General Mark Rutte.
This solution, if consummated, will be a great one for the United States of America, and all Nato Nations, he wrote.
Trump told CNBC that the deal, which he said would last forever, could involve mineral rights and the planned Golden Dome missile defence system.
Announcing his decision on Truth Social, Trump said more information would be available as discussions progress.
He added that Secretary of State Marco Rubio and Special Envoy Steve Witkoff would report directly to him as negotiations proceed. No further details were provided.
Trump had previously dismissed the idea of a lease agreement, saying that you defend ownership. You don't defend leases. It also remains unclear what role rare earth minerals could play. Greenland has vast - and largely untapped - reserves of rare earth minerals, many of which are crucial for technologies including mobile phones and electric vehicles.
Globally, the Arctic territory ranks eighth for earth minerals, according to a recent analysis from the Washington-based Center for Strategic and International Studies.
Trump had said he was planning to place a 10% tariff on any and all goods sent from the UK to the US from February 1, increasing to 25% from June 1, until a deal is reached for Washington to purchase Greenland from Denmark.
The same would apply to goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland – all of which are members of NATO, the defense alliance founded in 1949.
In an earlier address at the World Economic Forum in Davos, Switzerland, Trump said he was seeking immediate negotiations to acquire Greenland, but insisted he won't use force to take over the territory.
Under existing agreements with Denmark, the US has the power to bring as many troops as it wants to Greenland. It already has more than 100 military personnel permanently stationed at its Pituffik base in the north-western tip of the territory.
In response to Trump's previous tariff threat, French President Emmanuel Macron stated that an endless accumulation of new tariffs from the US was fundamentally unacceptable and urged the EU to consider retaliatory options.
As negotiations continue, the economic implications for both sides remain significant, particularly in the context of global supply chains and the importance of rare earth minerals for future technologies.
