Donald Trump says a Greenland deal 'framework' reached, cancels tariff threat

US President Donald Trump said Wednesday he is dropping his threat to impose tariffs on several European countries citing what he described as a new framework with NATO on Arctic securityThe abrupt aboutface comes shortly after he told the World Economic Forum in Davos that the US would not use force to pursue control of GreenlandAsked how long the deal will last Trump was clear its long term Its a deal thats forever he said Its whats called an infinite dealIn his earlier speech Trump reaffirmed his ambition to secure right title and ownership of Greenland and urged NATO allies not to stand in the way warning that refusals would carry consequences for the allianceTrumps address at the annual meeting of the elite in Switzerland tried to focus on his efforts to tame inflation and spur the economy back home But his more than 70minute address focused more on his gripes with other countriesEuropean Commission President Ursula von der Leyen on Tuesday called Trumps planned new tariffs on eight EU countries over Greenland a mistake and questioned Trumps trustworthinessFrench President Emmanuel Macron said the EU could retaliate by deploying one of its most powerful economic tools known colloquially as a trade bazookaUS stocks recover half of prior days plunge after Trump calls off tariffsThe US stock market rebounded after Trump called off Greenlandrelated tariffs that he had threatened to impose on EuropeThe S and P 500 rallied 12 per cent Wednesday after Trump said he reached the framework of a deal about Greenland The index recovered about half the ground it lost a day earlierThe Dow Jones Industrial Average also rose 12 per cent as did the Nasdaq composite Treasury yields eased in the bond market They also got some help from a calming of government bond yields in JapanEurope relieved after Trump walks back tariff threat US officialsFinancial markets arent the only ones breathing a sigh of relief after Trump rescinded his threat to impose new tariffs on European allies for their defence of Greenland and Danish sovereigntyA number of US officials had also been concerned about Trumps hardline stance and bellicose rhetoric toward Greenland Denmark and other NATO allies because they feared it could harm other foreign policy goalsThese officials thought the fixation on Greenland and taking it at any cost was distracting from and complicating the presidents effort to form the Board of Peace which is supposed to be announced on Thursday in Davos to oversee the Gaza ceasefire operationMany European countries which were already skeptical of the proposed boards broad global mandate had reacted even more negatively to the concept after Trumps tariff threatThe US officials spoke on condition of anonymity to discuss concerns being floated inside the administrationTrump says Greenland framework would meet his national security concernsThe deal is going to be put out pretty soon Trump said in a brief exchange with reporters on the sidelines of Davos forum It gets us everything we needed to getTrump says deal will last foreverAs he departed the World Economic Forum for the day Trump said his newly agreedupon framework of a deal with NATOs chief is a great deal for everybodyHe told reporters everyone would be happy with the deal which relates to Greenland and the Arctic While he said people are still working out the details he emphasized it would be really fantastic for the USAAsked how long the deal will last Trump was clear its long termIts a deal thats forever he said Its whats called an infinite deal Trump declines to name a price for GreenlandTrump declined to name a reasonable price for the United States to buy Greenland during a meeting with the NATO secretary generalTheres a bigger price and thats the price of safety and security and national security and international security having to do with many of your countries Trump responded when asked by The Associated Press how he would calculate a reasonable offer for the strategic land mass Thats really the price Its a big priceTrump responded ambiguously when asked to elaborate on his earlier comment that we will remember if Denmark refuses to sell Greenland to the USYoull have to figure that out for yourself he told a reporter Swedens deputy PM calls for Europe to toughen up against TrumpEbba Busch the deputy prime minister of Sweden said she heard a mix of irrational and rational arguments at the same time from TrumpEurope needs to toughen up We need to hold the line she told reporters in DavosWe will not be bullied or blackmailed into letting go of territory that is in this case Greenlands and DenmarksThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever