Overview
- The president announced a halt to new tariffs on European allies after saying negotiators have a Davos-brokered framework for further talks on Greenland.
- Details of the purported framework remain undisclosed, and Danish and Greenlandic leaders continue to reject any change to Greenland’s sovereignty.
- EU officials are preparing potential countermeasures, including anti-coercion tools and tariff retaliation, in response to earlier U.S. threats.
- U.S. stocks rebounded on the pause, reinforcing a pattern highlighted by economists that markets fall when tariff threats escalate and recover when they are pulled back.
- The reversal fueled the online 'TACO' narrative—short for 'Trump Always Chickens Out'—echoed by journalists and economists commenting on the policy and market cycle.