The Latest: Europe relieved after Trump reverses Greenland tariff threat

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DAVOS, Switzerland (AP) — Europe is breathing a sigh of relief Thursday following a dramatic reversal by U.S. President Donald Trump over Greenland the day before at the World Economic Forum in Davos, Switzerland, where he scrapped the tariffs that he threatened to impose on eight European nations to press for U.S. control over Greenland.

Trump said there is a new framework with NATO on Arctic security without the U.S. using force to take over Greenland. Still, there were many unanswered questions about what the Greenland deal means.

Here is the latest:

Tech billionaire Elon Musk is set to speak at Davos on Thursday in a newly scheduled session.

The World Economic Forum, which Musk previously criticized, confirmed it will be the Tesla owner's first time attending the elite event in the Swiss Alps.

His address is billed as a conversation with Laurence Fink, BlackRock’s CEO and interim co-chair of the forum.

Musk is embroiled in a war of words with Ryanair CEO Michael O’Leary that began with a dispute over installing Starlink systems on Ryanair planes. O'Leary on Wednesday dismissed the tech titan’s suggestion he would buy the budget airline.

Asian shares mostly advanced on Thursday, tracking Wall Street, after Trump walked back from imposing tariffs on eight European countries over Greenland and ruled out using military force to take control of the territory.

The future for the S&P 500 was up 0.4% on Thursday, while that for the Dow Jones Industrial Average increased 0.3%.

Tokyo’s Nikkei 225 climbed 1.9% to 53,760.85, with technology stocks among those leading the gain. SoftBank Group jumped 11% and chipmaker Tokyo Electron rose 3.7%.

The NATO chief is urging allies to “keep our eyes on the ball of Ukraine” after a standoff over Greenland that rattled the alliance appeared to ease a day earlier.

Rutte, speaking at the Ukraine breakfast, didn’t address a question about whether Greenland, which Trump has coveted, would remain a part of Denmark under the “framework of a future deal” announced by the president.

Rutte noted European plans to free up funds for Ukraine’s defense and U.S.-led talks about a peace deal, but said those efforts wouldn’t bear fruit immediately and Russia continues to launch drone and missile attacks on Ukraine.

“What we need is to keep our eyes on the ball of Ukraine. Let’s not drop that ball,” Rutte said.

Trump wants to spotlight his proposed "Board of Peace" at Davos on Thursday, looking to create momentum for a project that has been overshadowed this week by Greenland.

The new board initially was envisioned as a small group of world leaders overseeing the Gaza ceasefire, but has morphed into something far more ambitious. Skepticism about its membership and mandate has led some traditional U.S. allies to take a pass so far.

Trump expressed confidence in his idea ahead of what the White House said would be a “charter announcement” on the sidelines of the forum in the Swiss Alps.

Danish Prime Minister Mette Frederiksen said Thursday that her country can’t negotiate on its sovereignty.

She has been “informed that this has not been the case” following the announcement of a new framework with NATO on Arctic security without the U.S. using force to take over Greenland.

In a statement, the Danish leader said security in the Arctic is a matter for all of NATO and “good and natural” that it be discussed between the U.S. president and NATO Secretary General Mark Rutte.

Frederiksen said she has spoken with Rutte “on an ongoing basis,” including before and after he met Trump in Davos.

U.S. envoy Steve Witkoff says Trump is considering ideas like a “tariff-free zone” for Ukraine that could help industry develop in the war-torn country.

“The president has talked about a tariff free zone from Ukraine that I think would be game changing,” Witkoff told the Ukraine breakfast on the sidelines of Davos.

Witkoff made the comments before heading later Thursday to Moscow, where the administration has been working to wrest a peace deal to end the war between Russia and Ukraine.

Witkoff said he would travel next to Abu Dhabi, where there would be working groups on issues like “military-to-military” and “prosperity” discussions.

Europe is breathing a sigh of relief Thursday following a dramatic reversal by U.S. President Donald Trump over Greenland the day before at the World Economic Forum in Davos, Switzerland, where he scrapped the tariffs that he threatened to impose on eight European nations to press for U.S. control over Greenland.

Trump said there is a new framework with NATO on Arctic security without the U.S. using force to take over Greenland. Still, there were many unanswered questions about what this Greenland deal means.

The Associated Press was inside an event Thursday morning billed as a breakfast discussing the war in Ukraine and featuring NATO Secretary General Mark Rutte.

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AP World Economic Forum: https://apnews.com/hub/world-economic-forum