US President Donald Trump backs off European tariff threat, announces framework Greenland deal
Von Lallalit Srijandorn
Veröffentlichungsdatum: 22 Jan 2026 | Änderungsdatum: 22 Jan 2026
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US President Donald Trump said he would step back from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland, Bloomberg reported on Wednesday.
US President Donald Trump said he would step back from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland, Bloomberg reported on Wednesday.
He further stated that the United States and the North Atlantic Treaty Organization (NATO) had "formed the framework of a future deal with respect to Greenland.” However, Trump did not detail the parameters of the so-called “framework” and it was unclear what the agreement entails.
Market reaction
At the time of writing, the EUR/USD pair is trading 0.35% lower on the day to trade at 1.1677.
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
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