#TrumpCancelsEUTariffThreat #TrumpCancelsEUTariffThreat ๐บ๐ธโก๏ธ๐ช๐บ
Big pivot at Davos 2026 โ Donald Trump has scrapped the tariff threat he lobbed at European countries just days ago, taking the heat off markets and easing what looked like a transatlantic trade standoff.
โก๏ธ He announced heโs cancelling planned tariffs on 8 European allies that were tied to U.S. pressure over Greenland and Arctic strategy, claiming a new โframework of a future dealโ with NATO leadership on Arctic security instead. ๏ฟฝ
PBS +1
This is a classic Trump-style U-turn:
๐ฅ Threat โก๏ธ Market sell-off โก๏ธ Reversal โก๏ธ Stocks rally โ European and U.S. equities jumped after the announcement. ๏ฟฝ
The Guardian
But itโs not that simple:
The tariffs were tied to Greenland, and Trump still insists on a long-term U.S. interest in the region โ even while denying military force will be used. ๏ฟฝ
The New Indian Express
EU officials are skeptical and cautious, saying the tension isnโt fully resolved and might re-emerge. ๏ฟฝ
E&E News by POLITICO
Some EU lawmakers had already halted trade deal approvals in response to the initial tariff threat โ a political hit that wonโt disappear overnight. ๏ฟฝ
www.ndtv.com
Market takeaway:
Traders are breathing easier for now โ but volatility remains. This isnโt peace; itโs just Trump negotiating with the global markets watching.
This reversal highlights how policy rhetoric can swing risk assets in minutes โ and why macro traders canโt ignore political headlines in 2026.
๐ฅ Your move, Davos.
#WEFDavos2026 #TradeWars #Macro #Markets #EUUSRelations
