#ContentMiningRevampPublicBeta For traders, the move reinforces the "TACO" (Trump Always Chickens Out) narrative that has dominated the first few weeks of 2026—the idea that extreme tariff threats are frequently used as opening gambits before a pivot to a "framework" deal.

​Why This Matters for the Macro Picture
​Supply Chain Breathing Room: The proposed tariffs targeted eight key European nations (including Germany, France, and the UK). The removal of this threat prevents an immediate spike in landed costs for European imports.
​Inflation & Rates: Markets were pricing in a "tariff-induced inflation" spike. With the threat withdrawn, the pressure on the Fed to maintain an aggressive hawkish stance over the summer may soften slightly, stabilizing the long end of the bond curve.
​The "Greenland Framework": The pivot follows a meeting with NATO’s Mark Rutte in Davos. While the "deal" details are scant, the market is treating the shift from military/economic coercion to "diplomatic framework" as a massive de-escalation.
​Impact on Key Assets.