#TrumpWithdrawsEUTariffThreats — a major recent development shaping global markets and geopolitics:

Benzinga
European shares rebound as Trump withdraws tariff threats over Greenland
S&P 500 Jumps Over 1% As Trump Withdraws EU Tariff Threat: Investor Sentiment Improves, Fear & Greed Index Remains In 'Neutral' Zone
January 23
Why It Matters
U.S. President Donald Trump has formally withdrawn his planned tariffs on the European Union and the United Kingdom that were linked to a dispute over Greenland and Arctic strategy. Analysts say this move helped ease immediate trade tensions and boost investor confidence after markets reacted nervously to the earlier tariff threats.

Background:
Earlier in January 2026, Trump had threatened to impose a 10 percent tariff on imports from the UK and seven EU member states — including major economies such as Germany, France and the Netherlands — unless those countries supported U.S. ambitions regarding Greenland. Those threats raised fears of a transatlantic trade confrontation and triggered volatility in European and global financial markets.

What Changed:
Trump announced he is no longer moving forward with the tariff plan, stating that a “framework of a future deal” was agreed with NATO Secretary-General Mark Rutte during talks that focused on security cooperation in the Arctic region. The exact details of this framework remain vague, but the tariff threat has been shelved for now, averting an immediate escalation.

• European shares rallied strongly after the announcement, posting their biggest daily jump in weeks, as investors breathed a sigh of relief that trade conflict had eased.
• U.S. stock indices also gained, with the S&P 500 rising more than 1 percent as sentiment improved when the tariff threat was removed from the near-term risk agenda.
• At the same time, some assets like gold retreated slightly as geopolitical risk indicators eased, dampening safe-haven demand that had lifted metals earlier in the week.
Wider Trade Impact:
In response to the tariff withdrawal, the European Commission moved to suspend a large €93 billion retaliatory tariff package against the United States for six months, signaling a mutual de-escalation that could help stabilize transatlantic commercial ties.

Political Pressure:
The tariff saga also exposed broader tensions between the U.S. and its closest allies. The European Parliament had previously blocked progress on a broader U.S.–EU trade deal in protest over the U.S. tariff threats, underscoring how sensitive trade relations have become.

What Comes Next:
The withdrawal of these tariffs doesn’t eliminate future trade friction. Observers warn that unresolved issues — from aerospace and agriculture disputes to technology and market access — could resurface if diplomatic negotiations stall. Meanwhile, Trump’s more confrontational trade posture elsewhere, including potential tariffs on Canada and China, continues to shape market risk.

In short, reflects a significant shift away from an impending trade clash with Europe. It calmed markets, unlocked temporary diplomatic progress, and highlighted the importance of negotiation over confrontation in global trade policy.