Taco Thursday: European stocks rise after Trump ‘chickens out’ on tariff threat

Since the start of Donald Trump's second term, his confrontational approach has strained relations with Europe. The US President's pursuit of Greenland, a territory of Denmark, highlights this tension, with Trump exploring acquisition through economic pressure. This situation is considered an existential crisis for the EU and NATO. Europe is struggling to respond effectively to Trump's use of tariffs for various purposes, including geopolitical aims. The EU has attempted diplomacy, even accepting tariffs on exports to the US in a trade agreement that has not been ratified. The US National Security Strategy views Europe as vulnerable due to its own democratic shortcomings, further complicating the transatlantic relationship.

President Trump's recent remarks in Davos, Switzerland, highlighted a significant rift between the U.S. and Europe, particularly regarding immigration, regulations, and Trump's desire to acquire Greenland. European leaders are convening in Brussels on Thursday to discuss the future of the transatlantic relationship in light of these disagreements. While Trump suggested a potential deal with NATO Secretary General Mark Rutte to resolve the Greenland dispute and avert threatened tariffs, details remain unclear and the situation is uncertain. The meeting aims to address the fundamental differences in values between the Trump administration and many European governments and determine a unified European response. The EU leaders will discuss how to proceed if Trump changes his position again.

European stock markets rose on Thursday after Donald Trump cancelled planned tariffs on eight European countries. The increase reversed losses from earlier in the week, driven by Trump's initial tariff threat related to Greenland. Analysts attributed the market rebound to a familiar pattern of Trump backing down from aggressive trade measures, dubbed the "Taco trade." The FTSE 100, Germany's Dax, and France's Cac all experienced gains, and Wall Street was forecast to open higher. Investors also reacted positively to developments in the Supreme Court case regarding Trump's attempt to remove Lisa Cook from the Federal Reserve board. While markets rallied, the S&P 500 and the US dollar remained weaker than their levels from the previous Friday.

Donald Trump has rescinded his threat to impose tariffs on eight European countries (Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland), which were initially scheduled to begin February 1st. The tariffs were in response to their support for Greenland's autonomous status. Trump claimed to have reached a "framework of a future deal" regarding Greenland after meeting with the NATO secretary general. While details of the agreement remain vague, it purportedly involves a US missile defense shield partly based in Greenland. NATO indicated discussions will focus on Arctic security and preventing Russian or Chinese influence in Greenland. Negotiations between Denmark, Greenland, and the United States will continue.

At the World Economic Forum on Wednesday, President Trump delivered a lengthy speech addressing European allies and reiterating his desire for the United States to control Greenland. He stated he would not use force to acquire the territory, but suggested consequences for those who oppose the acquisition. Trump argued that U.S. control of Greenland is vital for national security, citing potential exploitation by China and Russia, and criticized Denmark for perceived ingratitude. He referenced the U.S. defense of Greenland during World War II, despite the U.S. never having sovereignty over the territory. European leaders have rejected Trump's proposition, reinforcing NATO's presence and Denmark's military presence on the island.

In January 2026, US President Donald Trump announced he would not impose tariffs on several European countries after reaching an agreement with NATO chief Mark Rutte regarding Greenland and the Arctic region. Trump had previously threatened tariffs on Denmark, Finland, France, Germany, Norway, Sweden, the Netherlands, and the United Kingdom due to their opposition to his plans to take control of Greenland. Trump claimed the US needed to seize the island for national security reasons, accusing Denmark of failing to adequately secure Greenland's waters. The agreement with Rutte establishes a "framework of a future deal" that Trump believes will benefit the US and NATO, though specific details remain undisclosed. Greenlandic and Danish leaders had previously rejected Trump's stance, leading to protests.

Faisal Islam, reporting from Davos, describes Donald Trump's appearance at the World Economic Forum. Trump received a warm welcome initially, but the speech took a turn as he discussed America's role in the past and then insulted Europe's economy. He then announced he was seeking immediate negotiations for the USA to acquire Greenland, wanting "full title" to the land. He also warned Canadian Prime Minister Mark Carney about his words a day earlier. The event was marked by high security and a packed room, with some attendees being turned away. Prior to Trump's speech, his Commerce Secretary reportedly told an audience that Europe's economy was "dead," leading to a walkout.

The article discusses China's perspective on Donald Trump's interest in Greenland. While Trump claims his Greenland plans are to counter Chinese and Russian influence, the EU believes it will divide NATO, which would benefit both countries. China sees Trump's actions as further evidence of a weakening US-led world order, creating opportunities for China. Despite US concerns about China's growing Arctic presence, Chinese attempts to gain a foothold in Greenland have been blocked by the US and Denmark. China's official stance opposes undermining the UN charter and urges the US to stop using the "so-called China threat" as an excuse.

During the World Economic Forum in Davos, Donald Trump reiterated his interest in acquiring Greenland, citing national and world security concerns. He stated there's "no going back" on the issue after a call with NATO Secretary General Mark Rutte and a planned meeting in Davos. Trump also criticized the UK's plan to cede the Chagos Islands to Mauritius, calling it an act of "great stupidity" and linking it to the necessity of acquiring Greenland. He believes the UK's decision demonstrates weakness to global powers like China and Russia. Furthermore, a source confirmed the authenticity of a text message from Emmanuel Macron, showing Macron's agreement to a meeting in Paris after Davos.

Recent comments from Donald Trump regarding the potential U.S. acquisition of Greenland have triggered a shift in Europe's approach to the American president. Trump's continued pursuit of Greenland, a semi-autonomous territory of Denmark, and his suggestion of punitive tariffs against European nations that don't support the acquisition, have been met with strong resistance. European leaders, particularly in Germany and France, have condemned the threats, with Germany vowing not to be blackmailed. This marks a departure from Europe's previously conciliatory stance towards Trump. European leaders are now considering a more assertive strategy, combining diplomacy with the threat of retaliation, to address what they perceive as Trump's use of tariffs as a geopolitical weapon. The EU hopes to address the situation at the Global Economic Forum in Switzerland.

European Commission President Ursula von der Leyen has warned US President Donald Trump that imposing tariffs on countries opposing his push for Greenland is "a mistake." The EU and US had agreed to a trade deal in July, which must be respected, according to von der Leyen. She questioned the US trustworthiness and expressed concern that the proposed tariffs could plunge allies into a "dangerous downward spiral" that would aid adversaries. Trump has announced plans to impose 10% tariffs on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland starting February 1, with rates increasing to 25% in June. The US aims to acquire Greenland for national security and American interests. Von der Leyen vowed the EU's response would be "unflinching, united and proportional."

At the World Economic Forum in Davos, French President Emmanuel Macron urged the EU to actively counter threats from the US and China. He specifically cited President Trump's threat of tariffs against European countries who sent troops to Greenland, a territory Trump wants to acquire. Macron advocated for the EU to utilize its anti-coercion instrument (ACI), a powerful trade weapon allowing retaliatory measures like tariffs and market bans. He emphasized that Europe risks becoming subservient if it doesn't respond decisively to these pressures. The ACI requires activation by the European Commission and approval from a qualified majority of member states.

Denmark is facing a crisis over Greenland as threats by the United States to take control of the island have prompted a military response from Denmark. European allies have also sent small contingents to show support. The US interest in Greenland is driven by its strategic location and resources, making it a prized possession in an increasingly competitive global order. This development has exposed Denmark's own imperial past, as the country had previously aligned itself closely with the US and participated in wars that reshaped regions under the banner of security and alliance loyalty. Denmark's sovereignty and commitment to international law are being tested by this sudden application of imperial logic to its own territory. The crisis highlights the irony of Denmark's long-standing involvement in promoting these principles elsewhere.

Spoof "Make America Go Away" hats, parodying Trump's "Make America Great Again" slogan, have surged in popularity in Denmark and Greenland following the US president's interest in acquiring the territory. The hats, created by Copenhagen store owner Jesper Rabe Tonnesen, express opposition to the potential US acquisition. Originally created in 2024, demand increased dramatically after the Trump administration's escalated rhetoric regarding Greenland. The hats have become a symbol of Danish and Greenlandic defiance, appearing at protests in Copenhagen where demonstrators expressed support for Greenland and criticized US claims. European governments are also supporting Denmark and Greenland, emphasizing the importance of defending Arctic regions and warning against undermining western security.

Greenland's Prime Minister, Jens-Frederik Nielsen, has advised the island's population to prepare for a possible, though unlikely, military invasion, citing continued threats from former US President Donald Trump regarding a takeover. Speaking at a press conference in Nuuk on Tuesday, Nielsen announced the formation of a task force to help residents prepare for potential disruptions to daily life. The government is also distributing guidelines recommending residents store a five-day supply of food. Trump has publicly stated his desire to own Greenland for security reasons, even posting an AI-generated image of himself planting a US flag on the island. While Greenland is part of the Kingdom of Denmark, it maintains its own government, though Denmark handles defense and foreign policy and has recently increased its troop presence there.

Green Party leader Zack Polanski advocated for the UK to lessen its reliance on the US, suggesting a review of US military bases on British soil and a departure from NATO. Polanski expressed concern about the UK's dependence on American interests, particularly regarding Donald Trump's influence and potential policies. While not official Green Party policy, he supports the UK giving up its nuclear weapons and encourages other countries to do the same. His comments come amid rising transatlantic tensions, with potential tariffs being considered against the US due to Trump's demands regarding Greenland. Prime Minister Keir Starmer has warned against these trade threats.

Denmark is increasing its military presence in Greenland, deploying additional troops and resources to the Arctic territory. This move follows escalating tensions with former U.S. President Donald Trump, who has repeatedly asserted that Denmark is unable to secure Greenland and has suggested the U.S. should have greater control over the region. Trump has cited concerns about Russian and Chinese influence in Greenland as justification. Danish officials state the increased military presence is part of a broader effort to strengthen Arctic defense in cooperation with NATO allies and address general security concerns, not solely a response to Trump's statements. The deployment includes soldiers arriving in Nuuk and Kangerlussuaq.

British Prime Minister Keir Starmer criticized former U.S. President Donald Trump's threat of tariffs against allies regarding Greenland, stating that it is "completely wrong" and that a trade war benefits no one. Starmer's comments followed Trump's repeated assertions that the U.S. needs control of Greenland for national security reasons. Trump has claimed that China and Russia also desire Greenland, which possesses significant untapped reserves of critical minerals, and has not ruled out military action. Trump announced on Saturday that he would impose a 10% import tax on goods from eight European nations, including the U.K., starting in February.

Keir Starmer held a press conference addressing recent tensions between the US and Europe, particularly regarding Greenland and trade tariffs. Starmer called for calm discussions concerning Greenland's future, emphasizing that Greenland and Denmark alone should decide its fate. He downplayed the possibility of retaliatory tariffs on the US, stating that a trade war would not be in anyone's interest and advocating for a pragmatic solution. Starmer also reiterated his opposition to potential US tariffs on allies and stressed the importance of maintaining a strong UK-US relationship. He addressed concerns about screen time for young children and confirmed that a ban on social media for teenagers is being considered. The press conference occurred amid falling stock markets due to renewed tariff threats from the US.

British Prime Minister Keir Starmer publicly opposed President Trump's threat of tariffs against European nations over the potential acquisition of Greenland. Starmer stated on Monday that such tariffs were "completely wrong" and not in anyone's interest, emphasizing that Greenland's future should be decided solely by its people and Denmark. He communicated his views to Trump in a phone call on Sunday, highlighting the importance of alliances based on respect and partnership. Starmer also defended the presence of British military personnel in Greenland as part of a NATO mission focused on security concerns related to Russia. Trump's tariff threats have faced widespread condemnation in Britain, including from political allies.

Following Donald Trump's threat of tariffs against NATO allies who don't support his plan to acquire Greenland, the possibility of retaliatory tariffs from the UK has been addressed. Keir Starmer stated at a press conference that implementing tariffs would be an inappropriate response. The situation arose after Trump suggested tariffs if allies didn't back his Greenland proposal. Peter Walker, the Guardian's senior political correspondent, discussed the UK's likely course of action with Lucy Hough, as reported on YouTube. The UK's opposition leader is publicly against escalating the trade dispute with the US through retaliatory measures.

Following Donald Trump's tariff threats regarding Greenland, UK Prime Minister Keir Starmer addressed the situation in an emergency press conference. The podcast featuring Pippa and Kiran focuses on Starmer's response, specifically his statement that "we don't want a trade war." The discussion likely analyzes the content of Starmer's remarks and speculates on how they might be perceived, both domestically and internationally, given the potential economic implications of Trump's actions. The podcast aims to provide context and analysis of the UK's position in light of the escalating trade tensions.

Keir Starmer, the UK Prime Minister, has ruled out retaliatory tariffs against the United States following threats from Donald Trump to impose them on NATO allies regarding Greenland. Starmer stated that US tariffs would harm the British economy and prefers addressing the issue through calm discussion. He emphasized that the future of Greenland is a matter for its people and Denmark alone. Despite Trump's threats and pressure to condemn them more forcefully, Starmer aims to maintain a strong UK-US relationship, particularly in defense and security. He believes a trade war is not in the UK's interest and seeks a pragmatic solution to avoid serious consequences for the country.

Donald Trump, while president, imposed tariffs on imported goods, arguing it would boost American manufacturing and reduce the US trade deficit. These tariffs, taxes paid by companies importing goods, could increase costs for consumers. Trump also threatened tariffs against allies like the UK and several European countries for opposing a US takeover of Greenland, and against China, Mexico, and Canada to pressure them on migration and drug control. The legality of Trump's tariffs, enacted under the International Emergency Economic Powers Act, was challenged in court, with a US appeals court ruling them mostly illegal in August 2025. The Supreme Court is expected to rule on the case in the coming weeks.

Gold and silver prices surged to record highs on Monday, while European stock markets declined following former U.S. President Trump's threat to impose tariffs on eight European countries. The proposed tariffs, aimed at pressuring those countries to sell Greenland to the U.S., triggered investor concern and a shift towards safe-haven assets. Gold rose 1.6% to $4,666 an ounce, and silver climbed to $94.08 an ounce before easing slightly. European markets like France's Cac 40 and Germany's Dax experienced drops of over 1%. The tariff threat also weakened the U.S. dollar against the Swiss franc and Japanese yen. EU ambassadors are reportedly preparing retaliatory measures in response to Trump's potential actions.

President Trump's interest in Greenland and subsequent tariff threats against several European nations, including Denmark, for planned NATO exercises there, have strained US-EU relations. The proposed tariffs, a response to what the US perceives as insufficient military commitment, target eight European countries and threaten to escalate to 25% in June. This action has been widely criticized by European leaders like the Prime Ministers of the UK, France and Sweden, who view it as unacceptable and a form of blackmail. In response, some European lawmakers are calling for a halt to the US-EU trade truce agreed upon in July. EU national ambassadors are scheduled to meet to discuss potential counter-measures, highlighting the growing tension and uncertainty in transatlantic relations.

EU diplomats are holding emergency talks after former U.S. President Trump threatened tariffs on eight European nations (Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland) due to their opposition to his renewed attempt to purchase Greenland. Trump stated the tariffs, starting at 10% in February and increasing to 25% in June, would remain until a deal for Greenland's purchase is reached. European leaders, including Macron, Meloni, and van Weel, have condemned the tariffs as "blackmail" and a mistake, with Macron urging the EU to consider using its anti-coercion instrument. The EU-US trade deal, expected to be ratified in February, is now in doubt, with key figures in the European Parliament withdrawing their support. EU leaders von der Leyen and Costa warned the tariffs would damage transatlantic relations.

Several European nations, including Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom, issued a joint statement condemning potential tariffs threatened by Donald Trump regarding Greenland. Trump suggested tariffs of up to 25% if a deal isn't reached for the U.S. to acquire the Arctic island. These European leaders view the tariff threats as damaging to transatlantic relations and a potential catalyst for a negative spiral. They affirmed their commitment to Arctic security, respect for sovereignty, and solidarity with Denmark and Greenland. EU officials also expressed concern that the dispute could benefit Russia and China, and distract from supporting Ukraine. Trump has stated the U.S. needs Greenland for national security and its natural resources.

The article discusses the potential failure of the EU's strategy of appeasement towards the US, exemplified by Donald Trump's recent threat of tariffs against countries supporting Greenland. This threat, impacting six EU member states, the UK, and Norway, follows a trade deal signed last July that critics viewed as heavily favoring the US. The EU hoped the deal would stabilize relations and maintain US support for Ukraine. However, Trump's tariff threat has united the European Parliament in opposition to the agreement, with figures across the political spectrum condemning it as blackmail. The future of the trade deal and the EU's approach to the US are now in question.

In Nuuk, Greenland, thousands of Greenlanders protested on January 18, 2026, against threats from the United States to seize control of the territory. Al Jazeera reported on the demonstrations, where protesters rallied under the slogan "Not for Sale." The protests were a direct response to repeated threats made by US President Donald Trump regarding Greenland. The demonstrations highlight Greenlanders' opposition to potential US intervention and their desire to maintain control over their homeland. The event underscores the ongoing tensions between Greenland, Denmark (which governs Greenland), and the United States.

Thousands of Greenlanders marched in Nuuk, Greenland, on Saturday to protest against the possibility of a U.S. takeover. The demonstration, considered one of the island's largest, was triggered by Donald Trump's continued interest in acquiring the mineral-rich territory. Protesters carried signs and chanted slogans emphasizing Greenland's sovereignty. The march coincided with Trump's announcement of tariffs on European countries opposing U.S. control. Solidarity rallies also took place in Copenhagen and Nunavut, Canada, reflecting international support for Greenland's right to self-determination. Greenlanders expressed their determination to protect their country, culture, and future from external acquisition.

The EU is considering retaliatory tariffs of $108 billion or market restrictions on US companies in response to former President Trump's threats against NATO allies concerning Greenland. These measures are being prepared to give European leaders leverage during meetings with Trump at the World Economic Forum in Davos. Trump vowed to increase tariffs on eight European countries who have sent military staff to Greenland, until the US is allowed to buy the territory. These countries, already subject to existing US tariffs, issued a joint statement stating that their exercise in Greenland was to strengthen Arctic security and posed no threat. They also expressed readiness for dialogue based on sovereignty and territorial integrity.

Global stock markets are expected to decline when trading resumes due to President Trump's threat of new tariffs on eight European countries: Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. The tariffs, purportedly linked to Trump's desire to acquire Greenland, are set to begin at 10% on February 1st and increase to 25% on June 1st. Analysts predict losses on the London Stock Exchange and Wall Street, with investors seeking safe-haven assets like gold and silver, which are already seeing price increases. European leaders have criticized the move, fearing it will undermine NATO and disrupt trade agreements. Business groups are urging the EU to respond.

President Trump announced a 10% import tariff on goods from eight NATO allies – Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland – starting in February. The tariff could increase to 25% in June if an agreement isn't reached for the United States to purchase Greenland from Denmark. Trump stated the tariffs are in response to opposition to the Greenland purchase and recent visits to Greenland by representatives from some of the listed countries. The move is a significant escalation in tensions between the US and its NATO allies. The legality of imposing these tariffs under US law is unclear.

Donald Trump announced the U.S. would impose a 10% tariff on goods from several European countries, including Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, effective immediately. The tariff, slated to increase to 25% in 2026, is intended to pressure Denmark into selling Greenland to the United States. Trump claims the purchase is vital for U.S. national security and global peace, citing interest from China and Russia in the territory. He stated that the U.S. has unsuccessfully attempted to purchase Greenland for over 150 years. Greenland, a semi-autonomous territory of Denmark, holds strategic importance due to its location, U.S. military base, and access to resources.

Donald Trump has threatened to impose tariffs on the UK and seven other European countries, citing their troop deployments to Greenland as a "dangerous situation." The tariffs, starting at 10% on February 1st and potentially rising to 25% in June, are linked to Trump's past interest in buying Greenland. UK politicians across party lines have condemned the proposed tariffs, with concerns raised about the burden on British businesses and the impact on NATO allies. The UK government has yet to issue an official statement. The European countries involved have been advised to react calmly and continue working with Denmark to address US security interests.

Protests erupted in Greenland and Denmark on Saturday, January 17, 2026, in response to President Trump's renewed efforts to take control of the Arctic island. Hundreds of Greenlanders gathered in Nuuk, the capital, and other cities, while rallies also occurred in Copenhagen and other Danish locations. Demonstrators, including Prime Minister Jens-Frederik Nielsen, marched and held signs expressing their opposition to a U.S. takeover. The protests were triggered by President Trump's repeated suggestions that the United States would acquire Greenland, a semiautonomous part of Denmark, regardless of the islanders' wishes. Protesters voiced their determination to maintain Greenland's sovereignty and reject U.S. control.

Thousands protested in Denmark and Greenland on January 17, 2026, against U.S. President Donald Trump's threats to take control of Greenland. Demonstrations occurred in Copenhagen, Aarhus, Aalborg, Odense, and Nuuk, with protesters waving Danish and Greenlandic flags. The protests were organized in response to Trump's repeated attempts to gain control of the self-governing Danish territory, which both Greenland and Denmark have rejected. Trump announced tariffs on several European allies opposing US control of Greenland, starting with 10% in February and potentially rising to 25% in June, until an agreement is reached for the US to purchase Greenland. Organizers stated the protests aimed to show support for Greenland and alert the world to the issue.

Donald Trump's renewed interest in acquiring Greenland is facing significant opposition from within the Republican party. Several key Republican figures, including Senators Thom Tillis and Mitch McConnell, and Congressman Don Bacon, have publicly criticized the idea. They warn that pursuing this would damage relationships with allies like Denmark and harm Trump's legacy. The dissent comes after Trump reportedly reintensified his interest following a US raid involving Venezuela's president. Republicans are expressing concern despite typically avoiding open disagreement with Trump. The criticism highlights the potential consequences of Trump's expansionist ambitions, which include annexing Canada and the Panama Canal, and the potential damage to international relations.

Donald Trump stated on Friday that he may impose tariffs on countries that do not support the US controlling Greenland. This statement was made during an event at the White House regarding rural healthcare. Trump has repeatedly expressed his desire for the US to control Greenland, a semi-autonomous territory of Denmark, citing national security reasons. His comments came as a bipartisan Congressional delegation was in Copenhagen attempting to ease tensions. The foreign ministers of Denmark and Greenland met with US Vice-President J.D. Vance and Secretary of State Marco Rubio earlier in the week in Washington.

In January 2026, President Trump threatened to impose tariffs on countries that don't support the US controlling Greenland, citing national security and mineral resources as justification. This statement was made amidst rising tensions between the US, Denmark, and Greenland, a semiautonomous territory of Denmark. A bipartisan US congressional delegation traveled to Copenhagen to ease tensions, assuring Denmark and Greenland of congressional support and recognizing Greenland as an ally. Trump's renewed interest in acquiring Greenland has been met with resistance from European leaders, who maintain that Denmark and Greenland alone have authority over the territory. Denmark is increasing its military presence in Greenland in cooperation with allies.

President Trump's renewed interest in acquiring Greenland has triggered a surge of international media attention on the island. News outlets from around the world have descended on the semi-autonomous Danish territory to gauge the reactions of political leaders and residents. Greenland's population of 57,000 is feeling overwhelmed by the constant interview requests, particularly in the capital city of Nuuk. While Trump cites national security as the reason for wanting to control the island, Greenlandic leaders and residents insist it is not for sale and express confusion over his motives. Some residents believe Trump's interest is driven by the island's untapped natural resources, while polls indicate that most Americans oppose military action to acquire Greenland.

Following former President Trump's interest in purchasing Greenland, a meeting between Greenlandic, Danish, and American officials took place. Residents of Nuuk, Greenland's capital, expressed satisfaction that the meeting occurred, but indicated that it raised further questions. The article includes images of Greenlandic life in Nuuk, including a woman walking past the Greenlandic flag, a fisherman preparing his lines, a member of parliament advocating for independence, and a Danish naval vessel patrolling the waters. The photos were taken in January 2026. The article highlights the ongoing discussions and perspectives surrounding Greenland's relationship with other nations in light of past interest from the United States.