President Donald Trump is waiving the announced import duties on products from Europe that would come into effect on February 1. He states that a breakthrough in the negotiations on Greenland will temporarily remove tensions with the European Union. The threat of tariffs of ten percent hung over the market for days, but is now off the table for the time being.
Breakthrough after consultation with NATO leader
The American president spoke with NATO Secretary General Mark Rutte during the World Economic Forum in Davos. According to Trump, those consultations have led to a “framework” for a future agreement on Greenland and the Arctic, from which both the US and NATO would benefit.
As a result of this ‘productive meeting’, Trump will not implement the planned tariffs. This appears to have averted a new escalation in the trade conflict with the European Union for the time being.
US sends top team to negotiating table
The White House has set up a special negotiating team for the Greenland dossier. Vice President JD Vance, Secretary of State Marco Rubio and Special Envoy Steve Witkoff will lead the talks. They will report directly to Trump.
In addition to Greenland, the so-called Golden Dome initiative is also on the table, although it is still unclear what exactly this project entails.
EU remains critical of American strategy
Earlier this week, European Commission President Ursula von der Leyen strongly criticized Trump’s approach. “We now live in a world defined by brute force,” she said in the European Parliament. She accuses the US of mixing geopolitical ambitions with trade policy.
Although Trump states that the EU “desperately needs” the trade agreement, the question remains whether the recent turn is enough to restore confidence.
Bitcoin price rises immediately
As soon as the news about the scrapping of European import duties became known, crypto prices immediately shot up. The Bitcoin price rose strongly and is again approaching the psychological limit of 90,000 dollars.
The Ethereum and XRP prices also reacted strongly to the news and both posted gains of more than four percent. Investors seem to immediately translate the relief over the decreased geopolitical tension into renewed buying pressure on the crypto market.
Source: https://newsbit.nl/trump-schrapt-eu-heffingen-bitcoin-en-aandelen-schieten-omhoog-na-groenlanddeal/
