Initial talks between Denmark, the U.S. and Greenland over the Arctic island’s fate “went well” but the dispute is not over, the Danish foreign minister said Thursday.  

Lars Løkke Rasmussen and Greenlandic Foreign Minister Vivian Motzfeldt met with U.S. Vice President JD Vance and Secretary of State Marco Rubio in Washington on Jan. 14 and agreed to establish a “working group” to discuss Greenland and Arctic security amid U.S. President Donald Trump’s demands to take over the self-ruling Danish territory.

“After that there was a huge derailment,” Rasmussen said, apparently referring to Trump’s threat to impose tariffs on several European countries unless they agreed to hand over Greenland — a threat that he eventually walked back after saying he’d reached a “framework” toward a deal with NATO Secretary-General Mark Rutte, the details of which have not been made public.

“Things escalated, but now we are back on track,” Rasmussen told reporters at the Foreign Affairs Council in Brussels. The first meeting of the working group on Wednesday “went well and took place in a constructive atmosphere and tone.”

“I’m a little more optimistic today than I was a week ago,” he added, but warned the dispute has not been “resolved” and more talks are planned.

Trump’s threats to seize Greenland roiled Europe and fractured transatlantic relations, leading to calls from leaders for the EU to become more unified and independent to ensure its own security.

France and Germany went so far as to call for the EU to explore deploying its “trade bazooka,” the Anti-Coercion Instrument, before Trump backed down.

Rasmussen credited Trump’s climbdown from launching a trade war to a “very strong European signal of solidarity” over Greenland.

“It has become clear that the price for going down that path has been too high,” he said.