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Trump Backs Off Tariff Threats on Europe in Greenland Deal Breakthrough

Published On Thu, 22 Jan 2026
Fatima Hasan
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President Donald Trump has reversed course on his proposed tariffs against key European nations, easing tensions sparked by the ongoing standoff over Greenlands strategic control. The announcement follows productive talks with NATO Secretary General Mark Rutte at the World Economic Forum in Davos, signaling a diplomatic pivot away from trade confrontation.
Just days ago, Trump threatened 10-25% tariffs on imports from Denmark, the UK, Germany, France, Norway, Sweden, the Netherlands, and Finland, set to kick in February 1. The move was tied to US frustrations over Arctic security, with Trump pushing for greater NATO involvement in defending Greenland—a Danish territory rich in rare earth minerals and vital shipping routes. European leaders pushed back hard, from Greenland protests to EU vows of retaliation, raising fears of a transatlantic trade rift. Trumps latest statement marks a clear walk-back: Were holding off on tariffs thanks to a solid framework deal with NATO on the Arctic, he said, emphasizing no military action would be used to claim the island. Markets welcomed the news, with European stocks climbing and global currencies stabilizing.
This isnt the first time Trumps aggressive rhetoric has led to negotiation wins—think his 2018-2020 China trade deals. By dangling tariffs, he forced Europe to the table, potentially bolstering NATOs northern flank against rivals like Russia and China eyeing Arctic resources as ice melts. Yet questions linger: Will the framework deliver real commitments, or is it more posturing ahead of 2027 budget fights?
The Greenland thaw contrasts sharply with violence elsewhere. In Kabul, a blast at a Chinese-run noodle restaurant killed seven—including one Chinese citizen—and injured 13 others on January 19. ISIS claimed responsibility, citing Beijings Uighur crackdown, prompting China to demand Taliban safeguards for Belt and Road projects. This attack underscores risks for Chinas Afghan investments amid Taliban rule.
Disclaimer: This image is taken from Zee News.