DAVOS, Switzerland (AP) 鈥� U.S. President said Wednesday he is dropping his threat to impose tariffs on several European countries, citing what he described as a new framework with NATO on Arctic security. The abrupt about-face comes shortly after he told the in Davos that the U.S. would not use force to pursue control of Greenland.
Asked how long the deal will last, Trump was clear it鈥檚 long term. 鈥淚t鈥檚 a deal that鈥檚 forever,鈥� he said. 鈥淚t鈥檚 what鈥檚 called an infinite deal.鈥�
In his earlier speech, Trump reaffirmed his ambition to secure 鈥渞ight, title and ownership鈥� of Greenland and urged NATO allies not to stand in the way, warning that refusals would carry consequences for the alliance.
Trump’s address at the annual meeting of the elite in Switzerland tried to focus on his efforts to tame inflation and . But his more than 70-minute address focused more on his gripes with other countries.
European Commission President Ursula von der Leyen on Tuesday called Trump鈥檚 planned over Greenland a 鈥渕istake鈥� and questioned Trump鈥檚 trustworthiness. French President Emmanuel Macron said the EU could retaliate by deploying one of its most powerful , known colloquially as a trade 鈥渂azooka.鈥�
Here is the latest:
Putin says Russia has yet to decide on joining the Board of Peace
Putin thanked Trump for the invitation and said Russia鈥檚 Foreign Ministry is going to study the proposal and consult with 鈥渟trategic partners.鈥�
Putin emphasized his country鈥檚 special relationship with the Palestinian people and suggested sending $1 billion to the Board of Peace from frozen Russian assets.
Trump has explained inviting Russia to the board by saying he wants all nations involved, especially those with powerful leaders.
Trump acknowledged that, 鈥淚 have some controversial people. But these are people that get the job done. These are people that have tremendous influence.鈥�
US stocks recover half of the prior day鈥檚 plunge after Trump calls off Greenland-related tariffs
The U.S. stock market rebounded after Trump called off Greenland-related tariffs that he had threatened to impose on Europe.
The S&P 500 rallied 1.2% Wednesday after Trump said he reached the framework of a deal about Greenland. The index recovered about half the ground it lost a day earlier.
The Dow Jones Industrial Average also rose 1.2%, as did the Nasdaq composite. Treasury yields eased in the bond market. They also got some help from a calming of government bond yields in Japan.
Putin says Trump鈥檚 bid to acquire Greenland 鈥榙oesn鈥檛 concern us鈥�
Russian President Vladimir Putin late on Wednesday said Trump鈥檚 bid to acquire Greenland from Denmark 鈥渄oesn鈥檛 concern us at all.鈥�
Speaking at the Security Council meeting, Putin pointed out the United States鈥� past experience of acquiring land from other countries, like Russia and Denmark, and drew parallels between Greenland and Alaska, which the U.S. bought from Russia in the 19th century.
鈥淚f you compare this with the cost of the United States acquiring Alaska, then the price for Greenland would have been, well, somewhere around $200-250 million,鈥� Putin suggested. 鈥淚f you compare it with the price of gold at that time, this figure would have been higher, probably close to $1 billion. Well, I think that the United States can afford this figure.鈥�
Putin said that Denmark 鈥渁lways treated Greenland as a colony, and treated it quite harshly, if not cruelly.鈥�
鈥淏ut it certainly doesn鈥檛 concern us. I think they鈥檒l figure it out among themselves,鈥� the Russian leader concluded.
Europe is relieved after Trump walks back tariff threat, US officials say
Financial markets aren鈥檛 the only ones breathing a sigh of relief after Trump rescinded his threat to impose new tariffs on European allies for their defense of Greenland and Danish sovereignty.
A number of U.S. officials had also been concerned about Trump鈥檚 hardline stance and bellicose rhetoric toward Greenland, Denmark and other NATO allies because they feared it could .
These officials thought the fixation on Greenland and taking it at any cost was distracting from and complicating the president鈥檚 effort to form the Board of Peace, which is supposed to be announced on Thursday on Davos, Switzerland.
Many European countries, which were already skeptical of the proposed board鈥檚 broad global mandate, had reacted even more negatively to the concept after Trump鈥檚 tariff threat.
The U.S. officials spoke on condition of anonymity to discuss concerns being floated inside the administration.
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By Matthew V. Lee in Washington.
Canada鈥檚 leader met with NATO chief ahead of Trump鈥檚 announcement
Canadian Prime Minister Mark Carney met Wednesday with NATO Secretary General Mark Rutte, with both agreeing on the need to speed up new investment along the alliance鈥檚 northwestern flank, Carney鈥檚 office said.
He noted that Canada was already planning to quadruple defense spending over the next decade, including major investments to strengthen the country鈥檚 Arctic sovereignty.
The meeting came ahead of Rutte鈥檚 talks with Trump, who then announced they鈥檇 reached what the president called a framework agreement with NATO on Arctic security.
Carney said in a speech at Davos on Tuesday that middle-power countries need to stop pretending the rules-based order is still functioning and urged them to rally together against threats from great powers.
Trump says Greenland framework would meet his national security concerns
鈥淭he deal is going to be put out pretty soon,鈥� Trump said in a brief exchange with reporters on the sidelines of Davos forum. 鈥淚t gets us everything we needed to get.鈥�
Trump says deal will last 鈥榝orever鈥� and 鈥榞ets everything we wanted鈥�
As he departed the World Economic Forum for the day, Trump said his newly agreed-upon framework of a deal with NATO鈥檚 chief is 鈥渁 great deal for everybody.鈥�
He told reporters everyone would be happy with the deal, which relates to Greenland and the Arctic. While he said people are still working out the details, he emphasized it would be 鈥渞eally fantastic for the U.S.A.鈥�
President Donald Trump walks down stairs after a meeting during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 21, 2026. (AP Photo/Markus Schreiber)
Asked how long the deal will last, Trump was clear it鈥檚 long term.
鈥淚t鈥檚 a deal that鈥檚 forever,鈥� he said. 鈥淚t鈥檚 what鈥檚 called an infinite deal.鈥�
Trump has backed off tariffs before
It鈥檚 not the first time Trump has threatened tariffs, only to back away.
In April, after first saying he would slap massive tariffs on nations from around the world 鈥� prompting a sharp negative market reaction 鈥� Trump eased off. He bristled at suggestions he had , saying, 鈥淚t鈥檚 called negotiation.鈥�
Trump also moderated what had been aggressive posturing on Greenland on Wednesday when he said he wouldn鈥檛 take the territory by force. The U.S. stock market following those remarks.
Trump cancels tariff threat over Greenland and announces deal 鈥榝ramework鈥�
Trump says he and NATO Secretary General Mark Rutte agreed to 鈥渢he framework of a future deal鈥� on Greenland and the Arctic region that will take his Feb. 1 threat of tariffs off the table.
The announcement on his Truth Social platform came soon after he said in a speech at the World Economic Forum in Davos that he was backing off his threat of using military force to seize the Danish territory, which he says is crucial to U.S. national security.
Trump said further discussions are being held related to Greenland and his plans for a 鈥淕olden Dome鈥� to protect the United States from long-range missiles. He added that further information will be available as discussions continue.
Trump declines to name a price for Greenland
Trump declined to name a reasonable price for the United States to buy Greenland during a meeting in Davos with the NATO secretary general.
鈥淭here鈥檚 a bigger price, and that鈥檚 the price of safety and security and national security and international security having to do with many of your countries,鈥� Trump responded when asked by The Associated Press how he would calculate a reasonable offer for the strategic land mass. 鈥淭hat鈥檚 really the price. It鈥檚 a big price.鈥�
Trump responded ambiguously when asked to elaborate on his earlier comment that 鈥渨e will remember鈥� if Denmark refuses to sell Greenland to the U.S.
鈥淵ou鈥檒l have to figure that out for yourself,鈥� he told a reporter.
NATO leader says he reminds Europe about Trump鈥檚 frustrations
The NATO leader said he tells the organization鈥檚 members that Trump is 鈥渃ompletely committed鈥� but has 鈥渙ne irritant鈥� that Europeans were not paying the same amount for their defense as the U.S. was.
鈥淲e solved it and this is crucial also because we need the money to protect ourselves,鈥� Mark Rutte, secretary general of NATO, said at Davos.
Rutte assures Trump that NATO allies would stand with US if it鈥檚 attacked
Mark Rutte, secretary general of NATO, sought to shore up Trump鈥檚 confidence that his allies would stand with him in a crisis.
He also reminded Trump that NATO allies went to Afghanistan to fight on America鈥檚 behalf after the 9/11 attacks 鈥� and some soldiers never came home.
鈥淵ou can be assured, absolutely, if ever U.S. will be under attack, your allies will be with you,鈥� Rutte told Trump.
Trump said he appreciated the compliment and hoped it was true.
鈥淚 mean, he鈥檚 a good man, he鈥檚 never lied to me before,鈥� Trump said of Rutte in response to a reporter鈥檚 question. 鈥淚 just, you know, when I see what鈥檚 happening with Greenland, I wonder.鈥�
Trump says Danes will have to tell him their Greenland stance themselves
After a reporter asked Trump about Danish leaders鈥� rejection of his comments about acquiring Greenland, the U.S. president said 鈥淚 don鈥檛 like getting it secondhand.鈥�
In a speech at Davos earlier Wednesday, Trump insisted that he wants to 鈥済et Greenland, including right, title and ownership,鈥� but said he would not use force to do so.
A Danish government official told The Associated Press afterward that Copenhagen is in the Arctic. But the official, who was not authorized to comment publicly and spoke on condition of anonymity, underscored the government鈥檚 position that 鈥渞ed lines鈥� 鈥� namely Denmark鈥檚 sovereignty 鈥� must be respected.
The reporter鈥檚 question came as Trump sat down for a bilateral conversation with Mark Rutte, secretary general of NATO.
Azerbaijan鈥檚 president calls Trump 鈥榓 person who you can trust鈥�
President Ilham Aliyev of Azerbaijan hailed an 鈥渆xcellent speech鈥� and recalled how he has credited Trump for helping , its neighbor in the Caucasus.
He also said Azerbaijan will be part of Trump鈥檚 Board of Peace, 鈥渂ecause we think that President Trump is a person who you can trust, and we are trusting him, and we will be part of the Board of Peace.鈥�
Asked about Trump鈥檚 prospects of helping wrest peace in Ukraine, Aliyev said: 鈥淗e fixed our case, but unfortunately, still he has to work on that.鈥�
In Davos, Trump tells executives he鈥檚 made them much richer
President Donald Trump arrives to address a meeting of Global Business Leaders at the Annual Meeting of the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 21, 2026. (AP Photo/Evan Vucci)
Trump told a room of business executives they鈥檝e gotten a lot richer during his first year back in office.
The president spoke to a wealthy audience at the Davos economic forum in Switzerland as Republicans back home press him to focus on affordability, a top concern for Americans getting squeezed by higher prices ahead of the midterm elections.
鈥淚 don鈥檛 even ask anybody how you鈥檙e doing now,鈥� Trump said of his conversations with business executives. 鈥淚t鈥檚 like everybody is making so much money.鈥�
Even his enemies are doing well, he added.
鈥淎 couple of people in the room, I can鈥檛 stand them. And they鈥檝e become very rich. There鈥檚 nothing I can do about it,鈥� Trump said to laughs.
Sweden鈥檚 deputy PM calls for Europe to 鈥榯oughen up鈥� against Trump
Ebba Busch, the deputy prime minister of Sweden, said she heard 鈥渁 mix of irrational and rational arguments at the same time鈥� from Trump.
鈥淓urope needs to toughen up. We need to hold the line,鈥� she told reporters in Davos. 鈥淲e will not be bullied or blackmailed to letting go of territory that is, in this case, Greenland鈥檚 and Denmark鈥檚.鈥�
US House speaker won鈥檛 block Trump鈥檚 tariff threats over Greenland, which Democrats call 鈥榙umb鈥�
Republican House Speaker Mike Johnson said Trump鈥檚 tariffs policies have been working, bringing trillions of dollars into the U.S. during the president鈥檚 first year.
鈥淚 have no intention of getting in the way of President Trump and his administration, and how they鈥檝e been using this very effectively,鈥� Johnson said at the Capitol.
But a top Democrat, Rep. Ted Lieu of California, said the costs of tariffs are being passed on to American households.
鈥淭his is how ludicrous Donald Trump鈥檚 idea is,鈥� Lieu said at a press Capitol conference. 鈥淗e鈥檚 saying 鈥業f I don鈥檛 get my way on Greenland, I鈥檓 going to punish the American people even more.鈥欌��
鈥淗ow dumb is that?鈥� Lieu said. 鈥淲e鈥檙e asking the president: Focus on America, not on Venezuela or Greenland.鈥�
Republican Sen. Graham says Trump has convinced him to support buying Greenland
U.S. Sen. Lindsay Graham, a Republican from South Carolina, said Trump made a strong case Wednesday for acquiring Greenland legally.
鈥淭aking Greenland by force is off the table, it was never a good idea,鈥� Graham said, adding, 鈥淗e鈥檚 convinced me.鈥�
He emphasized that any deal involving Greenland must be approved by the Senate, which would not support using force.
Graham expressed his willingness to support a legal purchase of Greenland and said he aims to be 鈥淭rump鈥檚 biggest champion鈥� in bringing Greenland under American control, which he argued would be for the benefit of NATO.
Denmark is ready for more talks with US on Arctic security, Danish official says
Following Trump explicitly saying in his Davos remarks that he wasn鈥檛 considering military action to take Greenland, a Danish government official said Copenhagen remains ready to discuss how to go about addressing U.S. security concerns in the Arctic.
But the official, who was not authorized to comment publicly and spoke on condition of anonymity, underscored the government鈥檚 position that 鈥渞ed lines鈥� 鈥� namely Denmark鈥檚 sovereignty 鈥� must be respected.
France鈥檚 Macron cries 鈥榝ake news!鈥� over Trump prescription drug claims
President Emmanuel Macron鈥檚 office is disputing Trump鈥檚 assertion in Davos that he successfully pressured the French leader to increase prescription drug prices.
鈥淚t鈥檚 being claimed that President @EmmanuelMacron increased the price of medicines. He does not set their prices. They are regulated by the social security system and have, in fact, remained stable,鈥� Macron鈥檚 office said in a post on X. 鈥淎nyone who has set foot in a French pharmacy knows this.鈥�
It included a GIF of Trump speaking overlaid with the words, 鈥淔AKE NEWS!鈥�
Trump says some countries鈥� legislative bodies will need to approve joining his Board of Peace
The president said while in a meeting with the Egyptian president that there will be 鈥渁 lot鈥� of countries represented on his Board of Peace.
鈥淪ome need parliamentary approval but for the most part, everybody wants to be on,鈥� he said.
California Gov. 草莓传媒om calls Trump鈥檚 speech 鈥榬emarkably boring鈥�
Gavin 草莓传媒om, Governor of California, talks to the media after the speech of President Donald Trump during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 21, 2026. (AP Photo/Markus Schreiber)
鈥淎nd there was boorish parts of it, but those were not even that consequential, including name-checking people he likes and people he didn鈥檛 like,鈥� Gov. Gavin 草莓传媒om said. 鈥淗onestly, I was just a little disappointed.鈥�
, a frequent critic of Trump who鈥檚 eying a 2028 presidential run, has made himself available repeatedly to media this week in Davos.
鈥淔or a European audience, that may have been a new speech. My God, there wasn鈥檛 anything new about that speech for the American audience,鈥� he said.
Referring to Trump鈥檚 comment that he won鈥檛 use military force to wrest Greenland for the United States: 鈥淚 don鈥檛 think military force was ever real.鈥�
White House AI czar says child safety is a priority but warns against overregulation
Trump鈥檚 top adviser on artificial intelligence, David Sacks, told a Davos crowd that 鈥渃hild safety has to be part of a larger regulatory framework鈥� for AI but he warned against overregulating the technology.
Sacks acknowledged 鈥渉orror stories鈥� of AI chatbots that he says contributed to children harming themselves. But he also said billions of people, including many teenagers, are using AI without problems and it is 鈥渓ess addictive, more a utility,鈥� when compared to social media.
鈥淭here鈥檚 been a little bit of a transference of the concerns that people have about social media onto AI and some of that transference is justified and some of it may not be,鈥� Sacks said in a conversation with Salesforce CEO Marc Benioff.
Sacks called efforts across the 50 U.S. state governments to regulate AI a 鈥渓ittle bit of a knee-jerk reaction鈥� and one of the 鈥済reat threats to innovation in the United States right now.鈥�
Business tycoons wait outside Trump鈥檚 CEO reception
The CEOs of Visa, Cisco, Salesforce, JPMorgan Chase and Amazon are among the high-profile figures gathering outside Trump鈥檚 upcoming Davos event with global business leaders.
Sports will also be represented there, with Baltimore Orioles owner David Rubenstein and FIFA president Gianni Infantino spotted among the expanding group.
Sudan urgently needs more aid, humanitarian groups tell Davos
While the spotlight is on Trump, some of the world鈥檚 most pressing issues are also being debated at Davos, including the war in Sudan, now approaching its third year.
During a panel discussion Wednesday, humanitarian groups pushed for stronger international engagement to end the fighting as well as more aid to civilians.
International Rescue Committee President and CEO David Miliband called the crisis in Sudan an 鈥渁vatar for the world disorder.鈥� He said the conflict has been internationalized 鈥� 鈥� and said civilian deaths outnumber fighters killed.
Hanin Ahmed, head of the local aid initiative Emergency Response Rooms of Sudan, said the humanitarian situation is deteriorating across the country, including in areas not controlled by the Rapid Support Forces, citing food insecurity, lack of income due to prolonged job losses, and disease outbreaks.
Wall Street rises after Trump says he won鈥檛 use force to take Greenland
The U.S. stock market is bouncing back from its , although some signs of fear remain on Wall Street about Trump鈥檚 desire to take Greenland.
The S&P 500 climbed 0.7% on Wednesday after Trump said in his speech that he would not use force to take 鈥渢he piece of ice.鈥� The potential de-escalation in rhetoric around Greenland helped the index recover some of its 2.1% drop from the day before and pull closer to its set earlier this month.
The Dow Jones Industrial Average was up 353 points, or 0.7%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.7% higher.
Treasury yields also held steadier in the bond market, a day after jumping in a potential signal of worries about higher inflation in the long term. They got help from a calming of government bond yields in Japan. The value of the U.S. dollar was also mixed against the euro, Swiss franc and other currencies after sliding the day before.
But some nerves seemed to remain in the market, and the price of gold rose another 2.1% and topped $4,800 per ounce for the first time.
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