Trump calls off tariffs on Europe over Greenland after reaching deal ‘framework’

President Trump outlined more details of what he said was a “framework” agreement for a future deal with the European Union on Greenland:

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.

President Trump traveled to Davos on Wednesday and began with a combative message to Europe: You may not like what the US is doing, but you can’t ignore us.

The president opened his speech at the World Economic Forum outlining what he described as an economic miracle in the US and said that it is good news for Europe because the “USA is the economic engine on the planet.”

“When America booms, the entire world booms,” Trump said. “It’s been the history … you all follow us down, and you follow us up.”

The pointed comments came in addition to an extended discussion of Greenland and appeared to be a direct response to Canadian Prime Minister Mark Carney, who spoke at Davos on Tuesday with a pointed speech of his own in which he called a rules-based order led by the United States “a pleasant fiction.”

Carney sketched out a future in which Canada, Europe, and other smaller nations could be aligned without the US.

Without calling out Trump by name, Carney called on both companies and countries to make their own path when, as he put it, “great powers abandon even the pretense of rules and values for the unhindered pursuit of their power and interest.”

Trump ripped Carney’s speech, calling it “ungrateful.”

“Canada lives because of the United States,” Trump said. “Remember that, Mark, next time you make your statements.”

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.”

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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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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.”

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Novartis (NVS) CEO Vas Narasimhan said he expects the company’s agreement with the US to help shield it from any possible tariffs.

In an interview with CNBC, Narasimhan said that by the middle of this year, the company will not be “exposed to tariffs.”

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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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President Trump’s pursuit of Greenland has caused widespread concern, with European leaders expressing confusion at the president’s actions and protests taking place in Greenland. Markets have also been affected by the Trump administration’s latest moves.

Here’s how different pockets are reacting to Trump’s latest pursuit.

US futures: Nasdaq 100 futures (NQ=F) fell as much as 2%, while the Dow Jones Industrial Average futures (YM=F) pulled back 1.6% and S&P 500 futures (ES=F) fell 1.8%, as trade tensions escalated due to Trump’s Greenland threats.

Bonds: Bond prices dropped, as the threats made US investments look less attractive and raised fears that prices for goods would rise. The biggest losses were in long-term bonds; the 30-year Treasury yield rose to above 4.90%.

Dollar: The dollar fell to its lowest level in two weeks and currency hedging costs climbed as President Donald Trump showed no signs of backing down in his campaign for control of Greenland and threatened new tariffs on France.

French wine and champagne makers: Shares of French firms that make or are exposed to wine and spirits were hit. Champagne Luxury giant LVMH (MC.PA) — the owner of beverage brands like Veuve Clicquot (VRV.F) and Krug — was 2% lower, while peer Remy Cointreau (RMC.BE) shed 2%, and Laurent-Perrier (LPE.DU) dipped 1%.

Gold: Gold (GC=F) rose past $4,700 an ounce to a record high, while silver also reached an all-time peak.

President Trump doubled down on his pursuit of Greenland on Monday, speaking in Florida, he said the EU won’t resist too much.

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President Trump took a swipe at French leader Emmanuel Macron on Monday, saying he would put 200% tariffs on French wine and champagne following Macron’s decision not to join his peace initiative.

“Nobody wants him because he’s going to be out of office very soon,” Trump told reporters.“I’ll put a 200% tariff on his wines and champagnes and he’ll join,” he added.

Macron declined Trump’s request due to his pursuit of Greenland, sending a text to the US president.

The Trump administration established the Board of Peace for Gaza over the weekend. It consists of Russian President Vladimir Putin, Argentine President Javier Milei, and Canadian Prime Minister Mark Carney. Other invitees include Turkey’s President Recep Tayyip Erdogan and Brazil’s leader Luiz Inacio Lula da Silva.

Bloomberg News reports:

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