President Donald Trump backed down from some of his sternest threats on Greenland on Wednesday, withdrawing a threat to impose tariffs on a number of nations, saying a deal on the issue was in sight and saying he would not use force.

"We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote on his Truth Social platform. "Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st."

President Donald Trump attends the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 21, 2026. REUTERS/Denis Balibouse

Trump said he had tasked Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff to take part in the discussions and would make more information available "as discussions progress." He delivered the message after meeting NATO Secretary General Mark Rutte on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland.

The comments sparked a stock market rally, with the S&P 500 index up over 1.5%.