Trump reneges on tariff threat - Greenland deal reached

Trump reneges on tariff threat - Greenland deal reached
President Trump will no longer impose extra tariffs in Europe after a Greenland deal was reached. -EPA

US President Donald ⁠Trump has backed down from some of his sternest threats on Greenland, withdrawing a threat to impose tariffs on a number of nations.

He said a deal on the issue was ‌in sight and saying ​he would not use force. 

"We have formed the ‍framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote on his Truth Social platform. 

"Based upon this understanding, I will not be imposing the Tariffs ​that were scheduled to go into effect ‌on February 1st." 

Trump said he had tasked Vice President JD Vance, Secretary ​of State Marco Rubio, and special envoy Steve Witkoff to ‍take part in the discussions and would make more information available "as discussions progress." 

He delivered the message after meeting NATO ​Secretary ​General Mark Rutte on ​the sidelines of the World Economic Forum ​annual meeting in Davos, Switzerland.

The comments sparked a stock market rally, with the S&P 500 index up over 1.5 per cent.