Trump backs away from tariff threat after Greenland talks

A relief rally swept through European stock markets after Donald Trump appeared to row back on his threat of imposing additional tariffs on countries across the continent.

The shift followed a meeting between the US president and Nato secretary-general Mark Rutte, after which Trump said the two had agreed on a “framework for a future deal” covering security arrangements in Greenland.

Trump had previously warned that eight Nato members - including the UK - would face fresh trade penalties over their opposition to his proposal for the US to assume control of the mineral-rich Arctic territory.

He had threatened to impose a 10% tariff on their exports, escalating to 25% later in the year.

Prime Minister Sir Keir Starmer responded by ruling out retaliatory measures, insisting Britain would not be drawn into a trade war with its closest ally.

Instead, he called for the dispute to be settled through "calm discussion between allies", adding that "the use of tariffs against allies is completely wrong".

After describing his talks with Rutte as “very productive”, Trump has now suggested he was reconsidering the approach, easing investor fears of an imminent trade confrontation.