Donald Trump’s announcement of a “Greenland deal framework” has drawn scepticism from officials and residents in the Arctic territory, even as European leaders welcomed a pause in threatened tariffs. The president suggested a path forward for Greenland after weeks of heightened tensions, but details remain unclear. Trump first addressed the issue during his speech at the World Economic Forum. He insisted he wanted Greenland, “including right, title, and ownership,” but softened his more aggressive threats of military action. Hours later, he tweeted about a “framework of a future deal with respect to Greenland” following talks with NATO Secretary-General Mark Rutte. He also withdrew the threat of tariffs against eight European nations. In an interview with CNBC, Trump described the arrangement as “a concept of a deal.” Danish Foreign Minister Lars Løkke Rasmussen expressed cautious optimism. “The day ended better than it started,” he said. He added that discussions would now focus on balancing American security concerns with the sovereignty of the Kingdom of Denmark. Italy’s Prime Minister Giorgia Meloni also welcomed the development. Yet, Dutch Prime Minister Rutte urged caution, noting that “a lot of work remains to be done.” When asked if Greenland would remain part of Denmark, Rutte confirmed the topic had not been discussed and offered few details. NATO spokesperson Allison Hart emphasized that the framework talks would aim to maintain Arctic security through allied cooperation. Despite the European response, some Danish politicians voiced frustration. Sascha Faxe criticized Greenland’s exclusion from Wednesday’s negotiations. “It’s not real negotiations; it’s two men having a conversation,” she told Sky News. “There can’t be a deal without Greenland’s involvement.” Media reports suggest the proposed framework could grant the US sovereignty over small areas in Greenland hosting military bases. Comparisons were made to British bases in Cyprus. The deal might also allow the US to mine rare earth minerals without Danish permission. Greenlandic parliament member Aaja Chemnitz Larsen rejected the idea of NATO influencing Greenland’s sovereignty or mineral rights, calling it “completely out of the question.” The announcement followed days of heightened transatlantic tensions. Canadian Prime Minister Mark Carney had warned of a potential threat to the rules-based global order. European officials credited diplomatic efforts for influencing Trump’s change in tone. Swedish Foreign Minister Maria Stenergard said the united stance of European allies had “had an effect” and affirmed that they would not be “blackmailed.” Dutch Prime Minister Dick Schoof called the withdrawal of tariffs a sign of “de-escalation.” EU leaders are expected to discuss the situation during an emergency summit in Brussels. Financial markets also reacted to Trump’s statements. After his aggressive remarks on Greenland on Tuesday, US markets experienced a selloff. When he announced the framework deal and removed the threat of tariffs, markets rebounded. Mark Hackett, chief market strategist at Nationwide, said, “The market bounced when he said we wouldn’t use force.” Analyst Matthew Smart noted that uncertainty had “been priced out.” Observers pointed out that Trump has a pattern of escalating threats and then retreating under market pressure. After scaling back his global trade war in April last year, the Financial Times coined the term “Taco,” meaning “Trump Always Chickens Out.” Analysts noted that US allies hold trillions in US assets, and any large-scale sell-off could affect interest rates. Former US Ambassador Michael McFaul attributed Trump’s reversal to multiple pressures, including European unity, market stability, US politicians, independent media, and public opinion. In Greenland, reactions were far less positive. Residents expressed clear scepticism about Trump’s intentions. One man in Nuuk told AFP, “He’s lying,” while care worker Anak said, “Greenland belongs to the Greenlanders.” The future of Greenland remains uncertain as talks continue, and the framework proposal has yet to gain clear approval from Denmark or Greenlandic representatives.