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U.S. President Donald Trump has stepped back from his threat to impose tariffs on European allies over Greenland, saying a framework agreement has been reached that addresses American concerns related to the Arctic territory.

In a statement posted after a meeting with NATO Secretary General Mark Rutte, Trump said the United States had outlined the basis of a future agreement covering Greenland and broader Arctic security matters. He added that, as a result, tariffs previously scheduled to take effect on February 1 would not be implemented.

Those tariffs, which Trump had said could reach 25 percent, were aimed at Denmark and other European countries that have deployed troops to Greenland in coordination with NATO allies. The dispute had strained relations within the alliance and raised fears of a broader trade confrontation.

Trump did not disclose specific terms of the framework agreement but said it met U.S. objectives, particularly in relation to security and access to critical resources. Speaking to reporters later, he described the understanding as a long-term arrangement that placed all parties “in a good position,” especially regarding Arctic stability and mineral interests.

NATO officials confirmed that discussions focused on security cooperation rather than sovereignty. Secretary General Rutte later said Greenland’s status as part of Denmark was not discussed during his talks with Trump, noting that NATO has no authority over territorial ownership.

European diplomats said Trump’s shift in tone helped ease immediate tensions but did not resolve underlying disagreements. Questions remain about how any agreement could align with Trump’s earlier statements suggesting U.S. control over Greenland, a proposal firmly rejected by both Danish and Greenlandic leaders.

A NATO spokesperson said negotiations between Denmark, Greenland and the United States would continue, with the stated goal of preventing Russia or China from gaining economic or military influence in the region.

In Greenland, reactions to the announcement were mixed. Local officials expressed skepticism over the sudden change in U.S. policy, and authorities have reportedly begun distributing public guidance materials focused on crisis preparedness.

Greenlandic lawmakers have emphasized that decisions affecting the island must involve its elected representatives. One member of parliament said international organizations have no mandate to negotiate over Greenland’s resources or future without direct participation from its people.

While Trump’s announcement has temporarily defused the tariff threat, diplomats say the broader dispute over Greenland’s strategic role in the Arctic is far from settled.