Tensions between the USA and Europe eased after Donald Trump reversed his threat to impose tariffs on European countries over Greenland and ruled out using force to seize the territory. Speaking in Davos, Trump said a new ‘framework’ had been agreed with NATO secretary-general Mark Rutte, focussing on Arctic security, minerals, and defence cooperation. While details remain vague, the move paused a looming trade dispute that had shaken transatlantic relations and raised fears about NATO’s future. Denmark welcomed the de-escalation but reaffirmed that Greenland’s sovereignty is non-negotiable. European leaders cautiously praised the shift, seeing it as a step away from confrontation. Analysts, however, do not believe that trust can be fully restored, warning that relations may stay fragile, with trade and security tensions ready to resurface.