New year, same tariff turmoil.
President Donald Trump on Wednesday said that he would no longer impose a 10% tariff on several countries in the European Union beginning February 1 after reaching the “framework of a future deal” on Greenland with NATO Secretary-General Mark Rutte, according to a post on Truth Social.
Trump’s announcement – made on the same day as his address at the World Economic Forum’s annual meeting in Davos, Switzerland – came four days after the president vowed to impose 10% tariffs on Denmark, Norway, Sweden, France, the U.K., the Netherlands and Finland (with the rate increasing to 25% beginning June 1). Trump said the tariffs would remain until “a deal is reached for the complete and total purchase of Greenland.”
During his speech at Davos, Trump said it was a “core national security interest” for the U.S., which already has a military base on the island, to control Greenland.
In response to Trump’s latest tariff threats, EU President Urusula von der Leyen posted a joint statement with EU Council President António Costa over the weekend that EU leaders would stand united. “Tariffs would undermine transatlantic relations and risk a dangerous downward spiral,” the statement said. “Europe will remain united, coordinated and committed to upholding its sovereignty.”
- The latest threat came on the heels of Trump vowing that any country with economic ties to Iran could face a 25% tariff on goods exported to the U.S.
- Any such tariff would likely be enacted under the same International Emergency Economic Powers Act that Trump has used for similar levies. The president’s authority to do so has been challenged, however, with a decision from the U.S. Supreme Court expected soon.
- Trump has posted that a decision striking down the IEEPA tariffs “would be a complete mess,” but the Department of Justice filed a document suggesting that tariff refunds will be available if the Supreme Court rules such duties to be illegal.
ICYMI: What Are Current Tariff Rates? Find Out In PPAI’s Free Download
Earlier on Wednesday, in response to Trump’s threatened tariffs, the European Parliament formally paused work on the implementation of a transatlantic trade deal – signed by Trump and von der Leyen in July – which set U.S. tariffs on imports from the EU at 15% in exchange for the bloc not applying levies on American exports.
📢Jetzt offiziell: EU-US Deal bis auf Weiteres auf Eis gelegt!
— Bernd Lange (@berndlange) January 21, 2026
Wir haben gerade beschlossen, Arbeit von @ep_trade zur rechtlichen Umsetzung Turnberry-Deal auszusetzen.
Unsere Souveränität&territoriale Integrität stehen auf dem Spiel. Business as usual unmöglich #Grönland #Zölle
Translation of Bernd Lange, the chairman of the Parliament’s international trade committee, “Now official: EU-US deal is on hold until further notice. Our negotiating team just decided to suspend work of @ep_trade on the legal implementation of Turnberry deal. Our sovereignty and territorial integrity are at stake. Business as usual impossible.”
