Story perspectives

Trump Reverses Tariffs Amid Greenland Deal Talks

1/22/2026

Summary

Trump Reverses Tariffs

U.S. President Donald Trump reversed his plan to impose tariffs on eight European nations opposing U.S. control of Greenland.
He said the reversal stems from a “framework of a future deal” established with NATO Secretary General Mark Rutte at Davos.
Denmark and Greenland have stated that Greenland is not for sale.
Markets rebounded after the tariff threats.
Officials expect further talks on the deal and a missile defense system.

Summary

Trump Threatens Tariffs

European lawmakers have indefinitely suspended ratification of a U.S. trade deal.
U.S. President Donald Trump has threatened tariffs on eight European nations unless they back his Greenland plan.
Tariffs would start at 10% on February 1 and rise to 25% by June, with the EU potentially activating the Anti-Coercion Instrument.
Bernd Lange, chair of the European Parliament's trade committee, said cooperation is impossible until the United States ceases its threats.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised tariffs on imports by an average of 20%, worsening the Great Depression and provoking retaliatory tariffs from countries like Canada and the UK. This trade war contributed to a 40% drop in U.S. imports. Today, President Trump's tariff threats against European nations reflect similar protectionist trends, risking international economic cooperation.

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Trump Reverses Tariffs

U.S. President Donald Trump reversed his plan to impose tariffs on eight European nations opposing U.S. control of Greenland.
He said the reversal stems from a “framework of a future deal” established with NATO Secretary General Mark Rutte at Davos.
Denmark and Greenland have stated that Greenland is not for sale.
Markets rebounded after the tariff threats.
Officials expect further talks on the deal and a missile defense system.

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