U.S. President Donald Trump said he had secured “total and permanent” U.S. access to Greenland through a new framework deal with NATO, while NATO leaders urged member countries to strengthen their role in Arctic security amid concerns about Russia and China.

The announcement came at a tense moment in transatlantic relations, as Trump stepped back from earlier threats of tariffs against Europe and ruled out using force to take Greenland. This shift eased fears of a major rupture between the United States and Europe and led to positive reactions in global financial markets. European markets rebounded, and Wall Street’s main indexes moved closer to record highs. However, the sudden change in tone also raised questions about the long-term impact on trust between allies and business confidence.

Despite Trump’s claims, details of the agreement remain unclear. Denmark strongly rejected any suggestion that its sovereignty over Greenland was in question. European Union foreign policy chief Kaja Kallas said that recent events had harmed relations between the United States and Europe, stating that the relationship had “taken a big blow” over the past week.

Greenland’s Prime Minister Jens-Frederik Nielsen welcomed Trump’s remarks but expressed uncertainty about what the deal actually involved. “I don’t know what there is in the agreement, or the deal, about my country,” he said in Nuuk. He added that Greenland was open to dialogue but firm on its position: “We are ready to discuss a lot of things and we are ready to negotiate a better partnership and so on. But sovereignty is a red line.” He further stressed, “We cannot cross the red lines. We have to respect our territorial integrity. We have to respect international law and sovereignty.”

Speaking to reporters aboard Air Force One after returning from the World Economic Forum in Davos, Trump said negotiations were ongoing and that the new deal would be “much more generous to the United States, so much more generous.” When asked about sovereignty, he avoided giving a direct answer but said, “We have to have the ability to do exactly what we want to do.” Earlier, he told Fox Business Network that the agreement would give the United States “total access,” adding, “There’s no end, there’s no time limit.”

According to sources familiar with the talks, NATO Secretary General Mark Rutte and Trump agreed in Davos to hold further discussions among the United States, Denmark, and Greenland to update a 1951 agreement governing U.S. military access to the island. The framework also includes a proposal to block Chinese and Russian investments in Greenland. Another source described the agreement as “a frame on which to build,” warning that reports about specific details were “speculative.”

Rutte said NATO’s senior commanders would now work on defining additional security requirements in the Arctic. “I have no doubt we can do this quite fast. Certainly, I would hope for 2026, I hope even early in 2026,” he said.

Denmark described the situation as serious but acknowledged some progress. Danish Prime Minister Mette Frederiksen said that no negotiations had taken place with NATO regarding Greenland’s sovereignty. “It is still a difficult and serious situation, but progress has also been made in the sense that we have now got things where they need to be. Namely that we can discuss how we promote common security in the Arctic region,” she said. She also called for a stronger NATO presence in the region, including around Greenland.

European leaders warned that divisions among allies could benefit rival powers. Kallas said that disagreements between Europe and the United States “are just benefiting our adversaries who are looking and enjoying the view.” Finnish President Alexander Stubb said he hoped NATO members could develop a plan to strengthen Arctic security by the alliance’s summit in Ankara in July. British Prime Minister Keir Starmer told Rutte that the United Kingdom is ready to contribute fully to Arctic security efforts.

After meeting Rutte, Trump said a deal could help achieve his goal of a “Golden Dome” missile-defence system and secure access to critical minerals while limiting Russia and China’s influence in the Arctic. Rutte clarified that minerals were not discussed in his meeting with Trump and said negotiations would continue between the United States, Denmark, and Greenland.

The 1951 agreement already allows the United States to build military bases and move freely in Greenland as long as Denmark and Greenland are informed. The U.S. currently operates a base at Pituffik. Analyst Marc Jacobsen noted that U.S. activity in Greenland had been much larger during the Cold War and that current arrangements already allow a significant military presence. He said discussions would likely focus on missile defence and limiting Russian and Chinese involvement.

Beijing rejected claims that it poses a threat in the Arctic. The Chinese Foreign Ministry described such allegations as “baseless” and accused other countries of using China as a pretext to advance their own agendas. China said its Arctic activities comply with international law and accused Western countries of exaggerating its role.

European leaders and Greenland residents remain cautious. The president of the European Parliament said the EU would likely resume work on a trade deal with the United States after Trump withdrew his tariff threats. However, diplomats said European governments are reassessing their relationship with Washington due to the Greenland episode, which has shaken confidence in transatlantic ties.

In Nuuk, residents expressed confusion and concern about the rapid shifts in U.S. policy. “It’s all very confusing,” said pensioner Jesper Muller. “One hour we are, well, almost at war. Next hour everything is fine and beautiful, and I think it’s very hard to imagine that you can build anything on it.”