Trump backtracks on Greenland tariffs after Davos speech; E.U. suspends trade work

President Trump on Wednesday reversed course after days of threats over Greenland and a menacing speech at the World Economic Forum in Davos, saying he had reached "the framework of a future deal" for Greenland and the Arctic and that planned tariffs on eight European countries beginning Feb.

1 no longer needed to go into effect. The president’s warnings had sent stock markets plunging and prompted European leaders to convene emergency meetings, make frantic calls and suspend a trade arrangement they had negotiated with the United States. After Mr. Trump’s announcement markets soared, but little information about the purported Greenland agreement was immediately available; Mr.

Trump said it would be a "great one" for the United States. Analysts and officials said the episode was another destabilizing moment for global trade that is increasing doubts about cooperating with the president and pushing countries toward one another and toward China. The E.U. formally suspended its work on the trade deal; a senior European official suggested the pact could still be completed if the Greenland situation were resolved.

The report also notes that this month Canada struck a new partnership with China that would allow Beijing to export more electric vehicles to North America, and that Mr.

Key Topics

Politics, Donald Trump, Greenland, European Union, World Economic Forum, Usmca