Donald Trump has canceled plans to impose 10% tariffs on NATO countries from February 1, citing progress on a new framework agreement with NATO Secretary General Mark Rutte involving Greenland and the Arctic region.
Last week, Trump warned that he would implement the tariffs unless the United States secured strategic concessions, including access to the Arctic and influence over Greenland. He had also threatened to raise customs duties to 25% in June if no agreement was reached.
In an article on Truth Social, Trump said the tariffs were now suspended following what he described as a productive meeting.
The former president said the new framework, if finalized, would benefit both the United States and NATO. He named a group of senior officials, including Vice President JD Vance and Secretary of State Marco Rubio, to lead the negotiations.
Markets reacted positively to the announcement, with digital assets and stocks reversing earlier losses. Bitcoin rose 2%, closing in on the $90,000 level, while the S&P 500 climbed 1.2% and the Nasdaq gained 1.4% on the day, as investors welcomed a break in trade tensions and signs of diplomatic progress.
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