Trump Withdraws New Tariffs On NATO Allies After Meeting With Secretary General

• The President said that after a very productive meeting with the Secretary General of NATO, Mark Rutte, and having formed the framework of a future deal with respect to Greenland, he would not be imposing the tariffs. 
• Trump added that additional discussions are being held concerning the Golden Dome, a multi-layer missile defense system proposed for the U.S., “as it pertains to Greenland.”
• Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others will be responsible for the negotiations, and will report directly to him, Trump said.

U.S. President Donald Trump said in a social media post on Wednesday that he will not be levying tariffs on NATO allies that were scheduled to go into effect on Feb 1.

Last week, Trump threatened to impose 10% tariffs on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, in an attempt to pressure the countries over Greenland.

“Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump said in a post on Truth Social.

“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,” he added.

Further Details

Trump did not provide any additional details of the framework agreed upon with the Secretary General in his post. However, in an interview with CNBC’s Joe Kernen in Davos, Switzerland on Wednesday, Trump said that the deal would involve “strong security and other things.” He said that the deal was a bit complex and would be explained down the line, but would last “forever.”

In the Truth Social post, the President added that additional discussions are being held concerning the Golden Dome, a multi-layer missile defense system proposed for the U.S., “as it pertains to Greenland.”

“Further information will be made available as discussions progress,” Trump said, adding that Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and various others will be responsible for the negotiations. “They will report directly to me,” he said.

Greenland Impact

Trump has been pushing to acquire Greenland, a semi-autonomous Danish territory, citing national interests and its vulnerability to a takeover from Russia and China.

At the World Economic Forum in Davos, Switzerland, Trump asked for “immediate negotiations” for the acquisition of Greenland by the United States. However, he denied that the U.S. would use force to acquire the island.

Earlier on Wednesday, the European Union’s legislative body suspended its trade deal with the U.S. over Greenland threats.

“Our sovereignty and territorial integrity are at stake. Business as usual impossible,” said Bernd Lange, chair of the European Parliament’s International Trade Committee, in a post on X, stating that the EU-U.S. trade deal would be on hold until further notice.

Meanwhile, U.S. equities shot up on Wednesday. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, climbed 1.34%, the Invesco QQQ Trust ETF (QQQ) rose 1.66%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 1.28%. Retail sentiment around the S&P 500 ETF on Stocktwits remained in the ‘bearish’ territory at the time of writing amid ‘high’ message volumes.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.28% at the time of writing.

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