Overview
- At Davos, President Donald Trump said he reached a framework for a future Greenland agreement with NATO’s Mark Rutte and withdrew plans for Feb. 1 tariffs on select European countries after pledging not to use force.
- U.S. stocks recovered (Dow +1.21%, S&P 500 +1.16%, Nasdaq +1.18%) following Tuesday’s sell‑off tied to the tariff threats, while gold set new records as investors maintained geopolitical hedges.
- The earlier threats included a 10% tariff rising to 25% on eight European nations over Greenland and a 200% levy on French wine and champagne.
- Rutte urged “reflective diplomacy” to manage the Greenland dispute and noted that Trump’s pressure has pushed more NATO members to hit the 2% defense spending benchmark.
- Mexico reported a 4.6% rise in 2025 tax collection, projected 2026 revenue at 6.448 trillion pesos, canceled a proposed tax on violent video games, and cited 97.3 billion pesos in tax refunds as it reaffirmed close U.S. trade ties despite wider de‑risking efforts.