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