In a surprising move that calmed many people around the world US President Donald Trump said he will not move forward with the tariffs he earlier warned about against European countries over Greenland. This decision came after talks with NATO leaders and helped reduce fears of a new trade conflict.
What Was the Tariff Threat
Earlier Trump had warned that the United States could impose extra tariffs on imports from several European countries including Denmark France Germany and the UK. The reason behind this warning was Greenland. Trump wanted stronger US involvement in Greenland saying it was important for national security and Arctic safety.
He had said tariffs could start at 10 percent and later rise to 25 percent if European nations did not agree. This statement shocked European leaders because these countries are long time allies of the US. Markets also reacted badly and investors became nervous.
On the 7th of October 2018 Donald Trump met with NATO Secretary General Jens Stoltenberg during a global economic summit in Switzerland. At that time Mr Trump expressed that he felt they had made progress and had been able to agree on a framework for future cooperation in the areas of security as well as creating an opportunity to work together in a cooperative manner on security issues in the Arctic. Because of this new understanding regarding cooperation in the areas of security Mr Trump stated that it was not necessary to implement tariffs on imported goods from Europe to the United States.
In addition to that Mr Trump stated that it is better for the United States to work in a cooperative manner with our NATO allies than it is to try to put pressure on them to comply with US policies. Mr Trump believes that by working together on issues of Arctic security all of the countries involved will benefit.
Some experts believe Trump used tariff threats as a pressure tool. Others feel international pushback forced him to step down. Whatever the reason the situation is calmer now.
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What Happens Next With Greenland
Even though the tariff threat is gone the Greenland issue is not fully settled. Trump has shown interest in the region because of growing influence from Russia and China. However Denmark and Greenland leaders have made it clear that Greenland is not for sale.
Any future discussion will need careful talks and respect for sovereignty. This topic is likely to come up again in global meetings.
In Simple Words
Trump first warned Europe with tariffs over Greenland. This created tension and fear of economic trouble. After talks with allies he stepped back and said no tariffs will be applied. For now the crisis has cooled and cooperation looks stronger.