#Trump cancels EU tarrif threat
President Donald Trump has withdrawn his threat to impose new tariffs on several European countries after diplomatic engagement and discussions at the World Economic Forum in Davos, Switzerland. The tariffs had been tied to U.S. pressure related to Greenland and broader Arctic security concerns. �
upday.com
Trump had initially threatened an additional 10 % tariff (potentially rising to 25 %) on goods imported from eight NATO and EU member states — including the United Kingdom, Denmark, France, Germany, Norway, Sweden, the Netherlands, and Finland — set to take effect on February 1, 2026. This move was linked to opposition from those countries over U.S. demands concerning control and strategic use of Greenland. �
upday.com
However, after meeting with NATO Secretary General Mark Rutte and announcing a new “framework of a future deal” on Arctic security, Trump said he would cancel the tariff threat. Discussions reportedly also touched on the U.S. “Golden Dome” missile defense program and cooperation on Arctic defense matters. �
wplg
Why This Matters
Diplomatic De-escalation: The cancellation of tariffs avoids a transatlantic trade conflict and appears to reflect compromise following NATO talks. �
AP News
Market Reaction: U.S. stock markets rallied after the announcement, as investors reacted to reduced trade tensions with Europe. �
Anadolu Ajansı
Political Context: Trump had earlier tied tariffs to controversial ambitions regarding Greenland — a strategic Arctic territory governed by Denmark — drawing widespread criticism from European leaders. �
The Guardian
Trade Relations: The move comes amid long-standing negotiations on U.S.–EU trade and follows earlier proposals on reciprocal tariffs and discussions about broader tariffs across multiple sectors. �
Wikipedia
European Response and Outlook
European officials welcomed the removal of the imminent tariff threat and emphasized the importance of continued cooperation. However, tensions remain beneath the surface. In response to Trump’s prior threats, the European Parliament had paused approval of a major trade deal, signaling that such pressure tactics could still impact institutional relations. �
The Guardian
Meanwhile, the European Commission has reportedly suspended a planned €93 billion retaliatory trade package against U.S. imports for six months, likely in part because the U.S. backed down on tariffs. This suspension could preserve stability in transatlantic trade — at least temporarily. �
Reuters
What Comes Next
Although the immediate tariff threat has been lifted, deeper questions remain about:
Long-term U.S.–EU trade policy and whether both sides can reach a balanced trade agreement without future threats. �
Wikipedia
Arctic security arrangements, especially related to Greenland and NATO cooperation. �
wplg
European unity in negotiating with Washington as member states push against what some have called coercive tactics. �
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