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Trump Lifts Tariff Threat, EU Parliament to Resume US-EU Trade Agreement Review

Following President Trump's withdrawal of tariff threats against European allies, the European Parliament is expected to restart the voting process on the US-EU trade agreement. This marks a significant shift in transatlantic trade relations, which had stalled over Greenland issues.

Greenland's Stance on Sovereignty

The Prime Minister of Greenland reiterated that sovereignty is non-negotiable, highlighting ongoing significant differences in this geopolitical game.

Upcoming Votes in the European Parliament

On January 22, European Parliament President Metsola stated in Brussels that Trump's change in stance is sufficient to support a vote on the US-EU agreement, with preliminary voting likely to occur in the coming days. The Parliament's approval is the final step needed for the EU to enact this trade agreement. Just a day prior, lawmakers had decided to indefinitely suspend the approval process due to Trump's "coercive" threats.

Trump's Dramatic Shift

On Wednesday, Trump dramatically reversed his position, announcing that he would not implement the tariffs set to take effect on February 1 for eight European countries. This decision came after a meeting with NATO Secretary General Stoltenberg, where they announced a framework for future cooperation regarding Greenland and the Arctic region. Although the details of the agreement remain unclear, this shift has temporarily eased transatlantic tensions.

US PCE Inflation Data Meets Expectations

On the same day, the US Bureau of Economic Analysis released the PCE price index for November. As the Federal Reserve's preferred inflation gauge, the November PCE inflation data showed a slight increase, further deviating from the central bank's target level but still aligning with market expectations.