Trump says a "framework" Greenland agreement has been reached with NATO, tariffs on Europe and Canada are on hold; US stocks surge, silver plunges.
The Greenland crisis appears to have taken a new turn; less than four days after U.S. President Trump threatened to impose tariffs on European countries, he has put the tariff plan on hold.
On Wednesday, the 21st (Eastern U.S. Time), Trump announced that he had reached a framework agreement on the Greenland issue with NATO Secretary General Rutte, thereby suspending the tariff plan that was scheduled to go into effect on February 1st for European countries. According to Xinhua News Agency, after meeting with Rutte in Davos, Switzerland, Trump said he would not impose additional tariffs as originally scheduled on eight European countries that opposed the U.S. acquisition of Greenland.
Trump posted on social media, stating that after a "very fruitful meeting" with Rutte, both sides had formed a "future agreement framework" regarding Greenland and the entire Arctic region. He said that if this solution is eventually reached, it will be "greatly beneficial" to the U.S. and all NATO countries.
The specific content of the framework agreement mentioned by Trump remains unclear. The White House has not yet responded to media requests for more information. However, the market quickly reacted to the prospect of eased U.S.-EU trade tensions.
After news of the framework agreement was reported, U.S. stocks surged at midday. All three major indices hit new daily highs, with intraday gains expanding above 1%, while silver plunged. New York silver futures fell more than 4%, and gold futures that had been up more than 2% during the session almost erased their gains.
Tariff Threat Temporarily Lifted Discussion of Missile Defense Systems
In his social media post, Trump made it clear that he and Rutte had "already reached consensus on the future agreement framework for Greenland and the entire Arctic region. If this solution is ultimately implemented, it will be greatly beneficial to the U.S. and all NATO member states. On this basis, I will not implement the original tariff measures scheduled to take effect on February 1st."
Immediately after, Trump wrote that both sides are currently conducting further discussions on the "Golden Dome" missile defense system related to Greenland, and as talks progress, more information will be provided.
Trump stated that U.S. Vice President Vance, Secretary of State Rubio, Special Envoy Witkoff, and "other necessary personnel" will be responsible for follow-up negotiations, and these officials will report directly to him.
Trump had previously said that U.S. control over Greenland is crucial for supporting the missile defense system.
Trump's Wednesday statement means that the risk of a U.S.-EU trade war sparked by the Greenland issue is subsiding.
Greenland is a semi-autonomous territory of Denmark. According to CCTV News, on Saturday the 17th (Eastern Time), Trump announced on social media that starting February 1st, a 10% tariff would be imposed on commodities imported to the U.S. from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, and claimed that the tariff rate would be increased to 25% from June 1st, until the relevant parties reach an agreement on the U.S.'s "comprehensive, complete purchase of Greenland."
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