Tariff War Temporarily Resolved... Greenland Sovereignty and Mineral Rights Remain as Flashpoints

US-Europe Conflict Eases
Trump: "Framework for Agreement with NATO"
"Sovereignty Issue Was Never Discussed"
Europe Draws a Clear Line on Related Matters

On January 21 (local time), US President Donald Trump announced that he had established a framework for agreement with the North Atlantic Treaty Organization (NATO) regarding the issue of Greenland's annexation. Notably, he also declared that he would withdraw the planned tariffs on eight European countries, which were scheduled to take effect from February 1. The intense conflict between the United States and Europe, which had escalated into a "hardline versus hardline" standoff, has suddenly entered a phase of reconciliation. However, if the two sides fail to narrow their differences over the issue of Greenland's sovereignty and the process of finalizing the agreement, it is expected that tariff disputes surrounding Greenland will resurface.

Donald Trump, President of the United States, is delivering a speech at the World Economic Forum (WEF) annual meeting held in Davos, Switzerland, on the 21st (local time). Photo by AP Yonhap News

Trump: "Framework for Agreement on Greenland Established with NATO"... Withdrawal of Tariffs on Europe, Exclusion of Force

President Trump stated on his social networking service, Truth Social, "I had a very productive meeting with NATO Secretary General Mark Rutte," adding, "We have established the basic framework for a future agreement on Greenland and the entire Arctic region." He continued, "If this agreement is ultimately finalized, it will be an excellent outcome not only for the United States but for all NATO member states," and added, "Based on this, I have decided not to impose the tariffs that were scheduled to take effect from February 1."

This move is interpreted as an attempt to avoid a full-scale escalation of conflict, considering Europe's strong opposition and concerns over cracks in the "Atlantic alliance," while also signaling the start of serious negotiations. In his special address at the World Economic Forum (WEF) in Davos, he said, "People thought I would use force, but there is no need for that," and emphasized, "I do not want to use force, and I will not use it."

Reuters commented, "President Trump has stepped back from weeks of hardline rhetoric that shook the NATO alliance and raised the risk of a new global trade war." On January 17, President Trump had announced that he would impose a 10% tariff on imports from eight European countries, including Denmark, which opposes Greenland's annexation, starting February 1, and a 25% tariff from June 1. In response, the European Union (EU) prepared a $108 billion trade retaliation package against the United States and even considered invoking the Anti-Coercion Instrument (ACI) as a countermeasure.

US President Donald Trump held a bilateral meeting with NATO Secretary General Jens Stoltenberg at the World Economic Forum (WEF) held in Davos, Switzerland, on the 21st (local time). Photo by Reuters Yonhap News

Did Trump Step Back Due to US Stock Market Plunge and Trade Agreement Approval Delay?

As signs of intensifying trade conflict between the US and Europe led to expectations of a "Sell America" scenario, analysts say President Trump shifted to seeking a solution. Former US Vice President Al Gore said in a CNN interview, "The simultaneous plunge in the bond and stock markets, with the index dropping nearly 900 points, likely prompted President Trump's retreat."

Europe's decision to suspend the approval process for a trade agreement with the United States is also cited as a factor that softened President Trump's stance. According to data from the US Department of Commerce, the total trade volume between the United States and the EU in 2024 is estimated to reach about $1 trillion. CNN explained, "The European Parliament blocked the ratification vote on the US-Europe trade agreement, and just a few hours later, President Trump withdrew his tariff threat."

A cafe located in Nuuk, Greenland, is broadcasting an image of Donald Trump, President of the United States, on its TV screen. Photo by AFP Yonhap News

Greenland Sovereignty Issue Not Discussed, Mineral Rights Also a Potential Flashpoint

Some observers point out that if the United States and Europe sit down at the negotiating table, the spark of dispute could reignite. In particular, the issue of Greenland's sovereignty is considered a matter where it is difficult for both sides to reach an agreement. When asked whether the recent agreement included acquiring ownership of Greenland, President Trump paused and simply replied, "Well... a long-term agreement." Unlike President Trump, who was reserved, the European side made its position clear. In an interview with Fox News, Secretary General Rutte stated, "The issue of Greenland's sovereignty was not even mentioned in the conversation with President Trump." The European Commission has consistently maintained the principle that Greenland's sovereignty and territorial integrity cannot be subjects of negotiation.

The mineral rights mentioned by President Trump are also likely to become a source of conflict. After announcing the withdrawal of tariffs, President Trump said in a CNBC interview that the Golden Dome missile defense initiative and mineral rights could be part of the agreement related to Greenland. In response, Aaja Chemnitz Larsen, a Danish parliamentarian from Greenland, said, "NATO has no authority to negotiate any matters related to Greenland," and asserted, "Nothing about us, without us."