Trump declaration of Greenland framework deal met with scepticism as doubts persist

Donald Trump’s announcement of a “framework of a future deal” that would settle the issue of Greenland after weeks of escalating threats has been met with profound scepticism from people in the Arctic territory, even as financial markets rebounded and European leaders welcomed a reprieve from further tariffs.

Just hours after the president used his speech at the World Economic Forum to insist he wanted Greenland, “including right, title and ownership,” but backed away from his more bellicose threats of military intervention – Trump took to social media to announce “the framework of a future deal with respect to Greenland” after talks with Nato secretary-general Mark Rutte, and withdrew the threat of tariffs against eight European countries. He later called it “a concept of a deal” when he spoke to business network CNBC soon after Wall Street closed.

“The day ended better than it started,” said Danish foreign minister Lars Løkke Rasmussen. “Now, let’s sit down and find out how we can address the American security concerns in the Arctic while respecting the red lines of the Kingdom of Denmark,” he said.

Italy’s prime minister, Giorgia Meloni, also welcomed Trump’s decision, but Rutte, who negotiated Wednesday’s deal with Trump, issued a note of caution, saying there remained “a lot of work to be done”.

When asked by Fox News if Greenland would remain a part of the Kingdom of Denmark under the deal, Rutte said the issue had not come up, and offered few further details about the agreement. Nato spokesperson Allison Hart said talks on the framework Trump was referring to would focus on ensuring Arctic security “through the collective efforts of allies.”

But there was anger from some Danish MPs, including Sascha Faxe who took umbrage with Greenland’s exclusion from Wednesday’s negotiations.

“It’s not real negotiations; it’s two men who have had a conversation,” she told Sky News. “There can’t be a deal without having Greenland as part of the negotiations.”

According to media reports, the compromise deal could see the US granted sovereignty over small pockets of Greenland where military bases are located, with unnamed officials in the Telegraph comparing the proposal to the UK military’s bases in Cyprus, which are regarded as British territory.

The framework would also potentially allow the US to mine for rare earth minerals, without seeking permission from Denmark, according to the Telegraph.

It remains unclear whether Denmark has signed up to the deal, but on Wednesday night Aaja Chemnitz Larsen, a Greenlandic member of the Danish parliament, said that the idea that Nato should have anything to say about the territory’s sovereignty or minerals was “completely out of the question”.

After days of ratcheting tensions which signalled the deepest rupture in transatlantic relations in decades – and saw Canadian prime minister Mark Carney issue a stirring eulogy for the rules-based order on Tuesday – Trump’s reasons for apparently backing down remain unclear.

Sweden’s minister for foreign affairs, Maria Stenergard, said the work of Europe’s allies has “had an effect” and she reiterated that they would not be “blackmailed”.

The Dutch prime minister, Dick Schoof, called Trump’s decision to waive threatened tariffs against European allies a sign of “de-escalation” and EU leaders are now set to discuss their options at an emergency summit in Brussels on Thursday.

Others pointed to wobbles on the financial markets, after Trump’s more hawkish comments on Greenland on Tuesday led to a sharp selloff on the US share markets. Global markets rebounded on Wednesday after Trump’s announced the framework deal and reneged his threat of tariffs.

“The market bounced when he said we wouldn’t use force,” said Mark Hackett, chief market strategist at Nationwide in Boston, while financial analyst Matthew Smart said “uncertainty just got priced out.”

Others noted that Trump has a history of making escalating threats, only to pull back when financial markets start falling. After he reined in his global trade war in April last year, following a rout in the markers, the Financial Times came up with the acronym “Taco” – “Trump Always Chickens Out” – to describe the phenomenon.

US publication Semafor reported that Trump appeared frustrated by the turn in the markets this week, and noted that his antagonism towards European allies came with huge risks.

“Countries like the UK, Belgium, and France hold trillions of dollars in US assets like treasuries. If they decide to sell those, it could send interest rates skyrocketing,” reporter Eleanor Mueller wrote.

Michael McFaul, a former US ambassador to Russia and avowed Trump critic, suggested the change in tone was a result of a variety of pressures on the president: “United Europeans, the market, other US politicians, independent media, and public opinion combined to stop Trump’s crazy gambit to invade & annex Greenland.”

In Greenland however, Trump’s announcement was greeted with serious scepticism.

“He’s lying,” said one main in the capital Nuuk, who was interviewed by the AFP news agency.

That sentiment was shared by care worker Anak, who told AFP “Greenland belongs to the Greenlanders.”