DAVOS, Switzerland: U.S. President Donald Trump, this week, backed down from his threats to impose tariffs on the European Union and invade Greenland.  

Speaking at the World Economic Forum in Davos, Trump suggested a deal was in sight to end a dispute over the Danish territory.

The latest effort from Trump came after weeks of rhetoric that shook the NATO alliance and risked a new global trade war, when he threatened to impose tariffs on U.S.-bound exports from eight European countries.

After meeting NATO Secretary General Mark Rutte at a Swiss mountain resort, Trump said Western Arctic countries could reach a new deal over the island of Greenland, which has about 57,000 people. He said the agreement would allow the U.S. to build a "Golden Dome" missile defense system and get essential minerals, while keeping Russia and China out of the Arctic.

Trump told reporters everyone would be happy with the deal and said it would be a long-term agreement that improves security and access to minerals.

Later, Rutte said they did not discuss whether Greenland would remain with Denmark. He said Trump was more focused on protecting the Arctic region, where China and Russia are becoming more active.

Earlier that day, Trump had strongly criticized some countries and made threats, which worried U.S. allies because of his earlier comments about taking territory from a NATO partner.

European diplomats said his calmer tone helped reduce tensions, but it did not fully resolve the disagreement, which they will continue to discuss privately.

It is still unclear what kind of deal could satisfy Trump, since he has said he wants to own the territory, while Greenland's leaders and people have said it is not for sale.

A NATO spokesperson said Denmark, Greenland, and the U.S. will hold talks to ensure Russia and China do not gain economic or military influence in Greenland, but no date or location was given. Trump said Vice President JD Vance, Secretary of State Marco Rubio, and envoy Steve Witkoff will take part in these talks.

Russian President Vladimir Putin said what happens in Greenland does not matter to Russia.

Trump later posted that the U.S. and NATO had agreed on a basic plan for a future deal on Greenland and the wider Arctic, and that, as a result, he would not impose new tariffs set to start on February 1.

This was another time Trump changed or delayed a major decision before a deadline during his second term.

Denmark said the issue should be handled quietly through diplomacy, not on social media. Denmark's foreign minister said it is essential to respect Denmark's sovereignty and the Greenlandic people's right to decide their own future. He said he spoke with Rutte but did not share details of what was discussed.

The European Union, however, announced late in the day that it was putting its trade deal with the U.S. on hold.