At a Glance
- President Trump called off 10% tariffs on eight European nations set for Feb. 1
- The reversal follows a “framework of a future deal” with NATO’s Mark Rutte on Greenland and the Arctic
- Stocks jumped to daily highs on the tariff retreat
- Why it matters: The move eases trade tensions that had rattled global markets
President Donald Trump on Wednesday reversed plans to impose tariffs on eight European countries after announcing a preliminary agreement with NATO leadership over Greenland and Arctic interests.
The president revealed the shift in a Truth Social post, citing “a very productive meeting” with NATO Secretary-General Mark Rutte. The pair, he wrote, “have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region.”
Tariff Threat Lifted
The duties that had been scheduled for Feb. 1 would have hit:
- Denmark
- The United Kingdom
- Six other nations participating in NATO exercises
Trump had warned that non-compliance by June would push the rate from 10% to 25%.
Stocks surged to their session highs following the announcement, reversing earlier losses tied to trade concerns.
Greenland Push Continues
Speaking at the World Economic Forum in Davos, Trump reiterated his interest in an American takeover of Greenland, at one point mixing up the territory with Iceland during his address to global leaders.
The president’s renewed focus on acquiring the Danish territory has drawn international pushback. Canadian Prime Minister Mark Carney voiced strong support for Greenland’s sovereignty, positioning Canada in direct opposition to Trump’s pressure campaign.
Market Response
Equity benchmarks turned sharply higher as investors priced in reduced trade friction. The rally marked a dramatic intraday swing after markets had sold off over the weekend when Trump first floated the tariffs.
Key Takeaways
- Trump canceled Feb. 1 tariffs after NATO talks
- A provisional Greenland-Arctic framework was cited as the reason
- Stock indexes leapt to the day’s peaks on the news
- Trade tensions ease, but the long-term status of Greenland remains unresolved
