Donald Trump backs off again, says will not be implementing the February 1 tariffs over Greenland

US President Donald Trump announced on Truth Social that he will not be proceeding with the 10% additional tariff threat that he had announced on his European allies over the weekend. The tariffs were to take effect from February 1.

Trump wrote on his social media that based on a very productive meeting that he had with NATO Secretary General Mark Rutte, they have formed the framework for a future deal with respect to Greenland, and the entire Arctic region.

"This solution, if consummated, will be a great one for the United States of America, and all NATO nations. Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect from February 1st," Trump wrote.

The President also went on to add that additional discussions are being held pertaining to the Golden Dome as it pertains to Greenland and more information will be made available as discussions progress.

He announced Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and others to be responsible for these negotiations and they would report back to him.

Following Trump's remarks, the TACO (Trump Always Chickens Out) trade played out on Wall Street, with the US benchmark indices recovering most of their losses from Tuesday's sell-off.

Earlier, during his address at the World Economic Forum in Davos, Trump linked Greenland to one "big beautiful piece of ice" and said that he will not be using force to acquire the self-governed territory under the kingdom of Denmark.

Right after Trump's address at Davos, the European Parliament, that was supposed to ratify last July's trade deal with the US, suspended the vote on the same indefinitely. The vote was supposed to take place on January 26 and 27. There has been no official remark from European leaders after Trump's backing off.

Over the weekend, Trump had announced that he would be implementing a 10% additional tariffs on European nations, including the UK, Norway, Denmark, and others, who had resisted his idea of purchasing Greenland for national security. The tariff threat led to a steep sell-off on Wall Street on Tuesday, wiping out nearly $1 trillion in market value.