Trump’s Greenland ‘deal framework’ and tariff backdown confuse
DAVOS, SWITZERLAND (CNBC) — U.S. President Donald Trump’s announcement of a tariff stand-down on European countries has led to mixed reactions, with markets rising but questions remaining about a supposed agreement on Greenland.
Trump’s Greenland “Deal” Raises Questions
Trump’s vague statement about a “deal” on Greenland’s minerals and national security has left many puzzled, as he did not provide details or clarify who agreed to the framework. European leaders, including NATO Secretary-General Mark Rutte, have not confirmed any agreements regarding Greenland’s ownership.
Why Trump Backed Down
Economist Robin Brooks suggests that Trump’s decision to halt further tariffs may have been influenced by concerns over rising global bond yields, rather than European negotiations. He also points out that European countries, aside from Germany, have limited fiscal space to increase spending on security.
Preparing for the Worst
Investor David Roche advises European leaders to plan for the worst-case scenario in light of Trump’s unpredictable threats. He warns that relying on Trump’s threats may no longer be a winning strategy, as allies have learned to stand up to him with success.
