Trump's tariffs see a new development? Davos negotiations confirm initiation, signaling a potential easing of the US-Europe trade war

January 20 News, as the situation evolves, the tense trade war between the US and the EU triggered by Trump’s tariffs may see a phased easing. US President Trump has confirmed that negotiations regarding the relevant tariffs and geopolitical issues will take place during the upcoming World Economic Forum in Davos, drawing significant market attention.

According to foreign media reports, Trump stated that he will meet with multiple parties in Davos, Switzerland, to discuss control over Greenland and the resulting tariff disputes. Trump revealed on social media that he had a “very good call” with NATO Secretary General Mark Rutte regarding this issue and agreed to continue discussions in Davos.

Mark Rutte later confirmed that both sides had exchanged views on Greenland’s security and related trade frictions, and that further dialogue would take place during the Davos forum, aiming to ease the transatlantic tensions intensified by Trump’s tariff policies.

The background of this negotiation is Trump’s previous public expression of intent to control Greenland and his plan to impose a 10% tariff on countries opposing this plan. This move quickly triggered strong backlash from the EU. EU leaders have reached a preliminary consensus on countermeasures and plan to hold an emergency summit this week to discuss how to protect member states’ economic interests and prevent further escalation of tariff shocks.

Trump has taken a relatively firm stance. He stated that the US will continue to pursue its established policies, while believing that the EU is unlikely to undertake large-scale retaliatory actions, and emphasized that his trip to Davos will demonstrate the strength of the US economy. He also plans to make a public speech on Wednesday regarding the latest developments in the Trump tariff incident.

On the market front, following the tariff news release, global financial markets experienced significant volatility. Cryptocurrency prices were under pressure, with Bitcoin briefly dropping near $91,000, triggering widespread liquidations. As the holiday ended, stock traders are also preparing for potential further declines, with investors generally readjusting asset allocations to cope with trade policy uncertainties.

However, analysts believe that if the Davos negotiations send positive signals, the risk of a US-EU trade war could see a phased cooling, and market sentiment may recover accordingly. The direction of Trump’s tariffs and the negotiation outcomes will remain key variables influencing global markets in early 2026.