DAVOS, SWITZERLAND – JANUARY 21: Delegates watch as U.S. President Donald Trump speaks onstage on the World Financial Discussion board (WEF) on January 21, 2026 in Davos, Switzerland.
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Markets and a few European leaders welcomed the information that U.S. President Donald Trump was standing down from imposing additional tariffs on European international locations — however others had been left bewildered.
Trump instructed CNBC on Wednesday that he had the “idea of a deal” with NATO Secretary Basic Mark Rutte, shortly after declaring on Reality Social that he wouldn’t proceed with the levies he threatened on eight European international locations from Feb. 1.
Markets on Thursday rose on the information, however questions stay in regards to the supposed settlement on Greenland.
Because the president did not share particulars of the framework — or who agreed to it — one strategist instructed CNBC: “No person’s going to imagine him anymore.”
A ‘deal’ and not using a deal
Trump outlined the Greenland settlement in sweeping phrases, casting it as an “final long-term deal” that locks in U.S. nationwide safety and offers entry to “minerals.”
Greenland’s location issues for Arctic navy posture, however local weather change is making the island extra accessible — sparking a renewed curiosity in its uncommon earths and different crucial mineral reserves.
However Trump didn’t say whether or not Denmark, which is liable for the island’s protection, or Greenland had signed as much as something.
NATO Secretary-Basic Mark Rutte instructed Fox Information that the issue of Greenland’s ownership didn’t come up in his talks with Trump, which had been about Arctic safety as Chinese language and Russian exercise will increase.
Ed Worth, senior non-resident fellow at New York College, instructed CNBC Thursday that hanging a deal “requires two individuals to tango,” describing Trump’s Davos speech as “a monologue not a dialogue.”
Worth additionally mentioned the framework was “the beginning of a course of, not the tip,” warning {that a} precedent of bargaining over disputed territories may tempt future makes an attempt elsewhere.
Chinese language state media, in the meantime, urged the EU on Wednesday to reassess its safety reliance on the U.S. and pursue higher “strategic autonomy.”
Trump has “advantaged” China in the long term by signaling that U.S. commitments can swing wildly with political incentives, Worth added.
Why Trump blinked: Treasury yields
Robin Brooks, a senior fellow on the Brookings Establishment, mentioned Trump’s toned-down rhetoric had “nothing to do with Europe” and was extra probably pushed by considerations in regards to the current spikes in global bond yields, which jumped on fears of a recent commerce struggle.
Brooks additionally mentioned Europeans had restricted leverage in negotiations with Trump.
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