Trump drops tariff threat against European allies after claiming a Greenland deal framework

President Donald Trump threatened to impose tariffs on several European countries, linking the threat to their opposition to U.S. control of Greenland. This caused stock markets to fall and gold prices to rise as investors worried about a new trade conflict.

Trump then reversed course, announcing he was dropping the tariff threat. He said he had reached a 'framework of a future deal' on Greenland with NATO allies, though European leaders expressed skepticism about any such agreement. Following the reversal, stock markets rallied and safe-haven assets like gold declined.