Trump had been threatening to place a 10% tariff “on any and all goods” sent from the UK to the US from 1 February, increasing to 25% from 1 June, until a deal was reached for Washington to purchase Greenland from Denmark.

The same would apply to goods from Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland – all of which are members of Nato, the defence alliance founded in 1949.

The US president dropped that threat on Wednesday after the talks with Rutte, saying in his post on Truth Social that he would cancel imposing the new levies.

“Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

In his speech to the World Economic Forum in Davos on Wednesday, Trump said he was “seeking immediate negotiations” to acquire Greenland, but insisted the US would not take the territory with force.

“We probably won’t get anything unless I decide to use excessive force. We’d be unstoppable, but we won’t do that,” Trump said. “I don’t have to use force. I don’t want to use force. I won’t use force.”

He also urged world leaders to allow the US to take control of Greenland from Denmark, saying: “You can say yes and we will be very appreciative. Or you can say no and we will remember.”