Trump pulled a classic power move, threatened tariffs over Greenland, got his Arctic framework at Davos, then canceled everything before markets could crash, leaving everyone wondering if this was strategy or chaos with a lucky ending.
Crypto Man MAB
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Trump Just threw the Brakes on EU Tariff Drama - And the Internet is Losing It!
In an election year twist that would have been the plot of a geopolitical reality show, President Donald Trump has formally called off his explosive threatened tariff allotments on main European countries. What began as an all stakes on the table battle over Greenland now has a significant de-escalation feel and markets (and memes) are feeling the relief.
The tea is as follows: Trump has on Saturday evening fired a salvo on Truth Social over the imposition of 10% (by June 25) tariffs on the imports of eight NATO members Denmark, Norway, Sweden, France, Germany, Netherlands, Finland and the United Kingdom. The reason? Urgent calls to relinquish control of Greenland, the giant of the Arctic, and the island that Trump has been basing his American First goals of expanding his national security and resources.
Europe clapped back hard. The EU Parliament simply froze a key U.S.EU trade deal ratification, labeling the threats as blackmail and preparing their own retaliation handbook (hiya, possible EUR93 billion counter-tariffs). The Wall Street plunged, transatlantic sentiments reached their lowest point and all prepared to have Trade War 2.0.
Then came Davos magic.
At the World Economic Forum Trump had a meeting with NATO Secretary General Mark Rutte. Hours afterward - boom - the president announced that they had agreed on a blueprint of a future deal on Greenland and the bigger Arctic. As a result? Tariffs off the table. No February 1st hit. No escalation. And like that the danger was gone.
On this information, I will not be delivering the Tariffs that were to be implemented at the beginning of the month on 1 st February. Truth Social (Jan 21, 2026), President Trump.
The decision is being greeted with what is being described as a brinkmanship masterclass go tough, win concessions and then withdraw like that was the strategy all along. Trump even declared that he would not use force to acquire Greenland in his Davos speech, which lowered the temperature considerably.
Why is this important at the moment?
Markets are fond of de-escalation Stocks rebounded with trade war fears dying overnight. Crypto and global finance The lower the uncertainty, the higher the bullishness towards risky assets (B Bitcoin owners, this is no different to you). Geopolitics glow-up NATO remains unbroken, Europe does not enter a nightmare of tariffs, and the U.S. does not lose levers on the strategy of the Arctic without destroying bridges.
Is this where the Greenland saga starts and ends? It is not likely the information about that framework remains unclear, and Trump is never hesitant to remain silent. But for today? The tariff bomb was diffused and the world narrowly escaped one huge economic headache.
Trump making threats into deals more quickly than you can utter, Art of the Deal classic. But it is not the end, stay here until 2026 when the drama will be upgraded.