President 𝗗𝗼𝗻𝗮𝗹𝗱 𝗧𝗿𝘂𝗺𝗽 has officially canceled his threat to impose new tariffs on several European countries. The announcement comes after talks with 𝗡𝗔𝗧𝗢 Secretary-General Mark Rutte at the World Economic Forum in Davos, where they reportedly agreed on a “framework of a future deal” involving Greenland and broader Arctic cooperation. This move means the previously planned 𝟭𝟬% tariffs which could have risen to 𝟮𝟱% on goods from eight European nations have been put on hold easing tensions across the Atlantic.
Markets reacted positively to the news, with both European and U.S. stocks seeing gains reflecting relief that a potential trade conflict has been avoided for now. The European Parliament had previously paused work on a major U.S.–EU trade deal in response to the tariff threat, so this development could reopen the door for economic cooperation. That said the details of the “framework” are still unclear, and underlying strategic and trade tensions especially around Greenland remain significant.
For now, what looked like the start of a trade war has been de-escalated, but the story is far from over.
