In a significant diplomatic turnaround, US President Donald Trump announced on Wednesday the withdrawal of his threat to impose tariffs on multiple European countries. This decision follows the establishment of a new security framework with NATO concerning the Arctic region, a move that appears to mitigate rising tensions over Greenland.
European leaders had openly criticized Trump’s proposed tariffs, viewing them as a strategic misstep. European Commission President Ursula von der Leyen condemned the tariffs, and French President Emmanuel Macron hinted at a possible strong economic retaliation from the EU.
The abandonment of the tariffs has produced immediate positive effects on the US financial markets. The S&P 500 and Dow Jones Industrial Average saw a 1.2% gain, partially recovering from the previous day's losses. Concerns among US officials about the potential negative impact on foreign policy also seem to have eased.
