Trump announces 'framework' for Greenland deal and withdraws duties Stocks accelerated gains
The US and NATO "have formed the framework for a future deal regarding Greenland", US President Donald Trump said on the social network Truth Social. He said this after a meeting with NATO Secretary General Mark Rutte: they are both in Switzerland to attend the World Economic Forum in Davos.
Trump added that because he had reached this "understanding," he would not impose additional duties on goods from eight European countries.
"We have formed the framework for a future deal regarding Greenland and indeed the entire Arctic region," Trump wrote. - This decision, if realized, will be great for the United States of America and all NATO countries. Based on the understanding we have reached, I will not impose the duties scheduled to take effect on February 1."
The US president also said "additional discussions" were underway on extending the Golden Dome missile defense system to Greenland. Vice President J.D. Vance, Secretary of State Mark Rubio and Special Representative Steve Whitkoff will be responsible for continuing the talks, Trump wrote.
How did the stock react
U.S. stocks accelerated sharply after Trump's publication. The broad market index S&P 500 at the time of publication of this text was rising by about 1.5%. "The tech-heavy Nasdaq Composite index was up 1.7%, while the Dow Jones blue-chip index was up 1.5%.
The main stock indices of the US stock market were rising on Wednesday afternoon after two days of decline. Investors were given optimism earlier by Trump's statements that he "does not need and does not want" to use military force to gain control over Danish Greenland, but at the same time the US president called Greenland "US territory" and called for the resumption of negotiations on the purchase of Greenland.
Context
Donald Trump is seeking control of Greenland, citing national security concerns.
On Saturday, January 17, the U.S. President announced the imposition of a 10 percent duty on eight European countries that supported Denmark and opposed his attempts to gain control of Greenland. The decision affected goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland. From June 1, 2026, the duty would have increased to 25% as planned.
The threat of duties has investors worried about a new trade war. On Tuesday, January 20, three major U.S. indices showed the strongest drop in one day since October. Analysts talked about the return of the "sell American" trend and warned of a possible European response.
This article was AI-translated and verified by a human editor
