Donald Trump has backed down over Greenland – ruling out his previous threats to seize the island by force – and withdrawing his plan to impose new tariffs on countries opposing his proposals.
Instead the US President told world leaders meeting in Davos, Switzerland that he is seeking immediate negotiations to acquire the island. He said: “We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But I won’t do that.”
He also said is dropping plans to add a 10% tariff to goods from eight European countries over their opposition to his push to acquire Greenland.
His wide-ranging speech, in which he appeared to confuse Greenland with Iceland four times, lasted more than an hour.
In a post on social media Trump says he has “formed the framework of a future deal with respect to Greenland" after talks with Nato’s secretary general, Mark Rutte.
US markets rose sharply following the announcement. The news offered some relief for the US’s European allies, who had been facing the possibility of an armed stand-off with their NATO ally.
However President Trump’s new position leaves many questions unanswered, with allies unclear on US policy towards Greenland going forward.
Reeta Chakrabarti presents BBC News at Ten reporting by Sarah Smith, Faisal Islam, Chris Mason and Katya Adler.
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