In an abrupt about-face on Wednesday, President Trump said he was calling off planned tariffs on European nations over his pursuit of Greenland. Trump cited the “framework of a future deal” reached with NATO Secretary General Mark Rutte.
“This solution, if consummated, will be a great one for the United States of America, and all NATO Nations. Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st,” Trump wrote on Truth Social.
The turn in direction came after Trump arrived at the World Economic Forum in Davos, Switzerland, on Wednesday, with his revived tariff threats against allies over his pursuit of Greenland having roiled markets and upended trading relationships forged just months earlier.
In a keynote address, Trump said he was seeking “immediate negotiations” over Greenland but also appeared to rule out the use of force to acquire the Danish territory.
“You can say yes, and we will be very appreciative, or you can say no, and we will remember,” Trump said.
NATO Chief Mark Rutte said a deal with Trump was secured after discussing the security of the Arctic region, prompting Trump to immediately scrap his tariff threats against European allies.
Trump over the weekend said the US would implement 10% tariffs on eight European countries that he says are getting in the way of a US purchase of Greenland, rising to 25% on June 1 if no agreement is in place. The tariffs would begin Feb. 1 and apply to “any and all goods sent to” the US. Europe hit back at Trump on Wednesday by putting its trade deal with the US on hold. The European Parliament decided to freeze a ratification vote in response to Trump’s threat to take over Greenland.
EU capitals have also entered discussions to implement tariffs of up to $108 billion on American products after Trump posted his plan to levy new tariffs on Europe on Saturday. But Trump predicted that his Greenland pursuit would not force the bloc to rethink its trade agreement with the US or its pledged investments in the country.
Meanwhile, the US Supreme Court’s first three opportunities to issue a verdict this year on the implications and legality of Trump’s global duties on trade partners have come and gone without a decision. The high court did not hand down a ruling on Tuesday, and it is unclear when it could rule next.
Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered
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Some details of Trump’s ‘framework’ deal on Greenland
President Trump outlined more details of what he said was a “framework” agreement for a future deal with the European Union on Greenland:
- He suggested the deal could involve Greenland’s natural resources. “They’re going to be involved in mineral rights and so are we,” he said on CNBC.
- Trump said that Vice President JD Vance, Secretary of State Marco Rubio, and special envoy Steve Witkoff would hold more negotiations.
- He suggested the agreement would last “forever.”
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Trump backs away from his tariff Greenland tariff threats
President Trump says he is backing away from a threat of 10% tariffs on eight European nations over the Greenland issue, saying a meeting with the NATO secretary general has yielded “the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region.”
As a result, Trump added, “I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”
The still-to-be finished Greenland deal, which the president didn’t give any significant details on in his post, means that the tariff threats are now off after days of ups and downs in the market after Trump threatened the tariffs over the weekend and then backed away from military action Wednesday morning in a speech before taking tariffs of the table in the afternoon in his Truth Social post.
The news came after a meeting where Trump told reporters that NATO Secretary General Mark Rutte was doing a “fantastic job” and went out of his way to praise increased NATO-member defense spending.
“Further information will be made available as discussions progress,” Trump added, noting that Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff would head up the talks.
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Rutte: Trump Greenland plan involved no sovereignty talk
In an interview with Bloomberg News at the World Economic Forum in Davos, Secretary General of NATO, Mark Rutte, said a breakthrough over Greenland was secured after discussing with President Trump regional security in the Arctic region, which led Trump to abruptly drop his threat to impose fresh tariffs on European allies.
The NATO chief added that the territory’s sovereignty was not discussed.
Trump had started to make threats against the EU over the week, stating he would impose 10% tariffs, which would come into force on February 1, if they prevented his takeover of Greenland, this would rise to a further 25% in June.
U.S. President Donald Trump meets with NATO Secretary General Mark Rutte at the NATO summit in The Hague in The Hague, Netherlands June 25, 2025. REUTERS/Piroschka Van De Wouw/Pool Bloomberg News reports:
The discussion centered on regional security in a “practical sense” — and how to prevent Russia and China from accessing the semi-autonomous Danish territory, Secretary General Mark Rutte told Bloomberg News Editor-in-Chief John Micklethwait in an interview at the World Economic Forum in Davos, Switzerland.
“When it comes to the protection of the Arctic, with a priority on Greenland, we have to spend more energy, more time, more focus on this because we know the sea lanes are opening up,” Rutte said. An American military presence was also not discussed, he said, though Denmark is “completely open” to an increased US footprint.
Trump’s ever-increasing appetite for control of Greenland, driven home through provocative claims and social-media memes, has alarmed transatlantic allies and prompted talk that the post-World War II North Atlantic alliance may finally be falling apart.
Rutte, with his penchant for assuaging the US leader, has mounted a coordinated campaign to produce an agreement.
The “framework” deal cited by Trump hours after his arrival at the Swiss ski resort on Wednesday is along the lines of the agreement produced last week in Washington, when a Danish delegation met with Vice President JD Vance and Secretary of State Marco Rubio, according to people familiar with the talks. That involved a working group to address US security concerns.
Collision Course
Whether the deal in Davos — announced on social media after Trump’s meeting with Rutte — was already on the table, the result was that Trump abruptly dropped his threat to impose fresh tariffs on European allies. That stance had put the US administration on a collision course with transatlantic partners, drawing attention away from matters including Russia’s war on Ukraine.
Part of the talks in Washington focused on refreshing a 1951 agreement that gave the US military wide latitude to defend Greenland in the context of NATO, the people said, speaking on condition anonymity as talks take place behind closed doors.
The icebound territory has become crucial to the alliance’s interests in the Arctic region. Trump had framed his claim as a way to defend the island against threats from Russia and China, a strategic point that NATO leaders have echoed.
Read more here.
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Japan’s exports rise in 2025 despite drag from US tariffs
FILE – A container port is seen from a helicopter in Tokyo, Oct. 29, 2025. (AP Photo/Mark Schiefelbein, File) Bloomberg News reports:
Japan’s exports managed to rise last year despite the first fall in shipments to the US since the pandemic, in a year that was roiled by tariffs from President Donald Trump.
Overall exports gained 3.1% in 2025 from the previous year, led by electronic parts and food, the Finance Ministry reported Thursday. While exports to Europe and Asia excluding China remained solid, shipments to the US fell 4.1% led by cars and chip-making machinery, marking the worst decline since 2016 excluding the impact from the pandemic. Shipments to China declined 0.4%.
On a monthly basis, Japan’s exports rose for a fourth consecutive month in December as Chinese demand held steady despite an ongoing diplomatic dispute that began last year. But shipments to the US dropped, led by cars.
Read more here.
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Latin America rides out Trump’s trade storm with help from China
President Trump’s tariffs have roiled markets and countries, but Latin America’s exports appear to have remained unscathed.
Argentina reported on Tuesday its second-highest exports for 2025. Brazil and Chile were not far off and reported this month that their own exports hit records in 2025. Mexico and Peru will soon release their figures, and experts believe it too will be a hit.
As Europe deals with renewed tariff threats from Trump, Latin America is heading into 2026 in a better position to withstand any further trade shocks from Washington. Latin American exporters are now benefiting from better logistics, sending shipments to emerging markets and improved relations with China
Farmers harvest soybeans in Argentina’s town of Estacion Islas April 3, 2010. REUTERS/Enrique Marcarian (ARGENTINA – Tags: AGRICULTURE BUSINESS POLITICS ENVIRONMENT) Bloomberg News reports:
The world’s second-largest economy is snapping up the region’s commodity exports, such as soybeans, copper and iron ore.
“Strong export performance last year looks counter-intuitive given the tariff noise, but it was driven by a combination of increasing prices, volumes and geopolitics,” said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics. “Key exports in the region should remain relatively resilient.”
Latin America has hurdled to the forefront of global geopolitics as Trump’s administration aggressively seeks to assert its influence across the Western Hemisphere. When it comes to trade, the reality on the ground in most of the region’s countries is that China is more entrenched than ever.
China’s Diversification
The regional trade shift in 2025 was especially visible in food and agricultural goods. China’s efforts to diversify sourcing boosted shipments of frozen Brazilian beef, which climbed nearly 50% from a year earlier. Greater soybean purchases from Argentina, spurred by a temporary suspension of export taxes, helped offset reduced US supply amid ongoing trade frictions.
Read more here.
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JPMorgan CEO Dimon on tariffs: ‘I don’t think, in general, it’s a good idea’
The CEO of JPMorgan Chase, Jamie Dimon, attends the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 21, 2026. REUTERS/Denis Balibouse JPMorgan (JPM) CEO Jamie Dimon spoke out about tariffs at the World Economic Forum in Davos on Wednesday.
Dimon said he doesn’t think tariffs in “general are a good idea.”
“I’m not a tariff guy. I don’t think, in general, it’s a good idea,” Dimon said.
The JPMorgan CEO did say there are times when tariffs are acceptable.
“There are three parts to trade, and some require tariffs. One part is national security, and we should do what we have to do around national security, around rare earths, and pharmaceutical ingredients and some that may require policy that is not typical, like tariffs.
Dimon said companies can not succeed if there are no barriers, quotas, tariffs or pay-for-play.
“The second one is unfair trade, and I just don’t think furniture or t-shirts are important trade, but there is unfair trade. If you are subsidizing China in this case, and anyone who tries to compete is gonna get sunk because of subsidies, then you should counter that with quotas or tariffs.”
Watch here.
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Trump arrives in Davos as Greenland spat continues
President Donald Trump arrives in Davos, Switzerland on Wednesday, 21 January 2026 REUTERS/Jonathan Ernst President Trump has officially landed in Davos, Switzerland, for the World Economic Forum. Trump’s flight was delayed after Air Force One reported a minor mechanical problem.
Trump plans to have meetings with various parties and will give a speech at Davos today.
The US President’s Davos address comes as markets and some US allies have raised concerns about his pursuit of Greenland.
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EU ‘fully prepared’ to hit back over Trump’s Greenland tariffs
President of the European Commission Ursula von der Leyen talks during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Tuesday, Jan. 20, 2026. (AP Photo/Markus Schreiber) Bloomberg News reports:
The European Union is ready to strike back at Donald Trump over his tariff threats as he seeks to take Greenland, European Commission President Ursula von der Leyen said, toughening her rhetoric against the US president.
“We are at a crossroads,” said von der Leyen, the top EU executive, speaking before the European Parliament in Strasbourg on Wednesday. “Europe prefers dialog and solutions — but we are fully prepared to act, if necessary, with unity, urgency and determination.”
Pointedly, von der Leyen also argued that there was no returning to the world order that Europe spent decades building with US cooperation.
“The shift in the international order is not only seismic — but it is permanent,” she said. “We now live in a world defined by raw power.”
“While many of us may not like it,” she added, “we must deal with the world as it is now.”
Read more here.
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ECB’s Lagarde sees little impact on inflation from more tariffs
European Central Bank (ECB) president Christine Lagarde gestures as she speaks during the World Economic Forum (WEF) (Photo by Fabrice COFFRINI / AFP via Getty Images) Bloomberg reports:
European Central Bank President Christine Lagarde said another volley of tariffs from US President Donald Trump would have only a minor impact on inflation in Europe.
“If we look in the short term, the immediate effect is relatively minor,” Lagarde said Wednesday in an interview with RTL radio.
According to the ECB chief, Trump’s latest threats would raise the average tariff rate for the euro area to 15% from around 12%.
“We have an inflation that would be very slightly affected, probably to the upside, but as we have inflation under control at 1.9%, the impact would be minimal,” Lagarde said.
Read more here.
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Bessent dismisses Danish Treasury sales as ‘irrelevant’
US Treasury Secretary Scott Bessent speaks at the USA house during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 21, 2026. (AP Photo/Markus Schreiber) US Treasury Secretary Scott Bessent brushed off Denmark’s sale of US Treasurys on Tuesday at the World Economic Forum in Davos. Bessent said he is “not concerned at all,” and told reporters it is irrelevant.
“It’s less than $100 million,” the Treasury Secretary said. “They’ve been selling Treasurys for years.”
On Tuesday, Danish pension operator AkademikerPension announced it would be selling around $100 million in US Treasurys. Anders Schelde, AkademikerPension’s investing chief, said the move was due to “poor US government finances.”
The “sell America” trade has bounced back this week after Trump escalated his battle with European leaders over Greenland. US stocks and bond prices have dropped as tensions between the two sides escalate.
Trump also threatened to impose 200% tariffs on French wine and champagne, following France’s leader, Emmanuel Macron, texting Trump and telling him he was “confused” over his choice to take over Greenland and that he would not be joining his Board of Peace for Gaza committee.
The US president said on Monday that he will impose 10% tariffs on the EU as part of his push to acquire Greenland; the duties would take effect on February 1 and would rise to 25%. Trump doubled down on his pursuit of Greenland on Tuesday as he headed to Davos, saying the EU “won’t resist too much.”
Read more here.
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Tariffs are bumping up product prices: Amazon CEO
Amazon CEO Andy Jassy speaks during an Amazon Devices launch event in New York City, U.S., February 26, 2025. REUTERS/Brendan McDermid Reuters reports:
Amazon.com (AMZN) is starting to see an uptick in product prices on its e-commerce platform as sellers respond to cost pressures stemming from U.S. President Donald Trump’s tariffs, the tech giant’s CEO, Andy Jassy, told CNBC on Tuesday.
The company had pulled forward its inventory shipments early last year and urged third-party sellers to bring in more stock ahead of time to circumvent tariff-driven surges in shipping costs, but “that supply has run out in the fall,” Jassy said in the interview at the World Economic Forum in Davos, Switzerland.
Read more here.
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Trump on how far he’ll go to acquire Greenland: ‘You’ll find out’
In a press briefing on Tuesday, President Trump said the US would pursue other strategies to acquire Greenland if the Supreme Court were to rule against his administration’s tariffs.
“We have other alternatives,” Trump said, “but what we’re doing now is the best, the strongest, the fastest, the easiest, the least complicated.”
When asked how far the US is willing to go to acquire Greenland, Trump answered, “You’ll find out.”
Trump said the US has “a lot” of meetings with Greenland scheduled at the World Economic Forum in Davos. Trump is expected to travel to Davos tonight.
Stocks were headed toward their worst day in two months on Tuesday as the markets digested Trump’s threats of fresh tariffs against European countries in order to obtain control of the Arctic territory.
US President Donald Trump speaks during a briefing in the Brady Briefing Room of the White House in Washington, D.C., on Jan. 20, 2026. (SAUL LOEB / AFP via Getty Images) -
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Trump says he will meet with ‘various parties’ in Davos concerning Greenland
President Donald Trump speaks with reporters after arriving at Palm Beach International Airport, Monday, Jan. 19, 2026, in West Palm Beach, Fla. (AP Photo/Julia Demaree Nikhinson) President Trump posted on Truth Social that, following a phone call with the Secretary General of NATO, Mark Rutte, he will have a meeting at the World Economic Forum in Davos with various parties concerning Greenland.
“As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back — On that, everyone agrees! The United States of America is the most powerful Country anywhere on the Globe, by far,” Trump posted.
“Much of the reason for this is a rebuilding of our Military during my First Term, which rebuilding continues at even more expedited pace. We are the only POWER that can ensure PEACE throughout the World — And it is done, quite simply, through STRENGTH! PRESIDENT DONALD J. TRUMP,” Trump added.
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EU tells Trump ‘a deal is a deal’ as Greenland threats escalate
President of the European Commission Ursula von der Leyen talks during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Tuesday, Jan. 20, 2026. (AP Photo/Markus Schreiber) Bloomberg News reports:
President Donald Trump’s economic threats on the European Union over acquiring Greenland amount to a “mistake” that violates a trade arrangement forged last year between the transatlantic allies, the bloc’s executive said.
“The European Union and the United States have agreed to a trade deal last July,” European Commission President Ursula von der Leyen said in a speech to the World Economic Forum in Davos, Switzerland, on Tuesday. “In politics as in business, a deal is a deal. And when friends shake hands, it must mean something.”
Trump announced a 10% tariff on goods from eight European countries beginning Feb. 1, rising to 25% in June, unless he has a deal for the “purchase of Greenland,” a semi-autonomous territory of Denmark, a NATO-ally and EU member. The escalation prompted European leaders to decry that the US leader has crossed a red line.
Read more here.
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