US President Donald Trump has dropped his threat to impose 10% tariffs on European nations, including the UK, averting a potential trade war. British Prime Minister Sir Keir Starmer welcomed the shift, saying it allows the "hard yards" of bolstering Arctic security to begin.
Trump reversed his position Wednesday evening following a meeting with NATO Secretary-General Mark Rutte at the World Economic Forum in Davos, Switzerland. Trump had scheduled the tariffs to take effect on February 1st amid pressure mounting over his ambitions to annex Greenland, the mineral-rich semi-autonomous Danish territory.
The US president posted on his Truth Social platform: "Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st." He told reporters the discussions with Rutte "formed the framework of a future deal" for Arctic security, describing it as a "long-term deal" and "infinite deal" that "if consummated, will be a great one for the United States of America, and all Nato nations"
Starmer's diplomatic approach vindicated
Starmer said: "And you may have seen, but it is a good thing that yesterday, the threat of tariffs against the United Kingdom was lifted and now we can start the hard yards and finding a way forward on security in the Arctic, which may seem a long way away, pretty remote, but actually it does matter to all of us in terms of the safety and security of our country."
The Prime Minister attributed the outcome to British pragmatism and common sense. "And we've got through the last few days with a mix of British pragmatism, common sense, but also that British sense of sticking to our values and our principles," he said.
UK Government insiders expressed contentment that events vindicated Starmer's diplomatic approach of advocating for calm heads rather than attacks on Trump. The Prime Minister had told the House of Commons on Wednesday he would "not yield" on his stance over Greenland.
Focus shifts to Arctic security
Foreign Secretary Yvette Cooper told Sky News: "I hope this now means we are in a much better place to actually focus on what the real issues should be, which is our collective Arctic security, how Nato countries work together, respecting sovereignty, respecting our shared collective security in the face of shared threats, particularly from Russia,"
Cooper, speaking to broadcasters Thursday morning, described the shift as "a reflection of the strength of our connections in Washington" She insisted "Greenland sovereignty is not up for negotiation" and hoped for resumed "direct discussions" between the US, Greenland, and Denmark.
Danish Prime Minister Mette Frederiksen will visit Britain on Thursday to meet Starmer, with Greenland sovereignty on the agenda.
NATO chief Rutte told Fox News that Greenland "did not come up anymore in my conversations tonight with the president"
Markets surge on relief
European stock markets rallied Thursday morning on investor relief. The UK's FTSE 100 jumped about 0.8% in early trading, Germany's Dax index climbed about 1.2%, and France's Cac 40 rose 1%. US markets had already responded overnight, with the S&P 500 and Dow Jones indexes closing about 1.2% higher.
Note: Artificial Intelligence (AI) created this article.
