On the second day of the World Economic Forum (WEF) summit in Davos, US President Donald Trump unveiled the ‘Board of Peace’, a new body aimed at resolving international conflicts. Several world leaders joined Trump on stage for the ceremony and signed the charter establishing the board.
Trump is also expected to meet Ukrainian President Volodymyr Zelensky later on Thursday to discuss a possible ceasefire in Ukraine.
Tariff Threats on Europe Withdrawn
The US President on Wednesday withdrew tariffs he had threatened against eight European countries as part of pressure tactics linked to US control over Greenland. The move followed discussions with NATO Secretary-General Mark Rutte at the Davos summit.
Trump said he had agreed with the NATO chief on a “framework of a future deal” focused on Arctic security. Following the talks, Trump said he would drop tariffs of up to 25 per cent that had been announced only days earlier and were due to take effect from February 1.
The proposed tariffs had targeted Denmark and several close European allies that had deployed troops to Greenland in a show of support.
What Is the Greenland ‘Framework’?
In a post on social media, Trump described his meeting with NATO’s leader as “very productive”, saying it resulted in a “framework” for a possible agreement on Greenland and Arctic security.
NATO also termed the discussions “very productive”, stating that any work on the framework mentioned by Trump would focus on maintaining security in the Arctic region.
However, NATO Secretary-General Mark Rutte said on Wednesday that the question of whether Greenland would remain part of Denmark did not arise during his discussions with the US President.
Trump’s Earlier Position on Greenland
Trump has previously said several times that Washington must own Greenland, an autonomous territory within the Danish kingdom, to prevent Russia or China from expanding their influence in the strategically located and mineral-rich Arctic region. Greenland also hosts a US airbase.
Relief in Denmark After Policy Shift
Trump’s earlier warnings had triggered one of the most serious transatlantic crises in decades, raising concerns that he could weaken NATO by taking aggressive positions towards another alliance member.
His change in tone brought relief in Denmark, a long-standing US ally, where the threats had caused shock and a sense of betrayal.
“Trump said that he will pause the trade war, he says, ‘I will not attack Greenland’. These are positive messages,” Danish Foreign Minister Lars Lokke Rasmussen told public broadcaster DR.
EU Pauses US Trade Deal
Meanwhile, a trade agreement between the United States and the European Union has been put on hold after the European Parliament decided to pause a ratification vote over Trump’s Greenland-related threats.
The Parliament’s trade committee had been expected to set its position during votes scheduled for January 26–27, but the process has now been delayed.
In a statement, Bernd Lange, chair of the Parliament’s trade committee, said, “By threatening the territorial integrity and sovereignty of an EU member state and by using tariffs as a coercive instrument, the US is undermining the stability and predictability of EU-US trade relations.”
