Trump Withdraws Threat of 25% Tariffs on NATO Allies After Davos Talks

President Trump has withdrawn his recent threat to impose additional 25% tariffs on NATO countries, including the U.K., France, and Germany. The decision followed a meeting in Davos, Switzerland, with NATO Secretary General Mark Rutte. Trump described the meeting as productive and announced on social media that there is now “the framework of a future deal with respect to Greenland.” He indicated that discussions about Greenland will continue, but did not provide further details.

The threatened tariffs were linked to Trump’s ongoing interest in acquiring Greenland, a territory of Denmark. The proposal had previously caused tension among NATO allies, who expressed concern about the potential economic impact of new tariffs on their exports to the United States. The wine, spirits, and beer industries were particularly concerned, as many U.S. businesses rely on imports from Europe.

Currently, the United States maintains a 15% tariff on wines and spirits from the European Union and a 10% tariff on U.K. bottlings. These tariffs remain in effect while the Supreme Court reviews their legality. A ruling is expected soon, which could affect the future of these charges.

Earlier this week, Trump also threatened to impose a separate 200% tariff on French wines if France does not accept his invitation to join the Board of Peace initiative for Gaza. This move added further uncertainty for importers and distributors in the U.S. beverage industry.

Industry groups have voiced strong concerns about the ongoing tariff threats. The U.S. Wine Trade Alliance stated that “the threat of new tariffs accelerates job losses and company closings across the United States.” The group emphasized that such threats disrupt business planning and put immediate financial pressure on importers, distributors, retailers, and restaurants that depend on imported wines.

The situation remains fluid as negotiations continue between the U.S. and its European allies. Many in the beverage industry are watching closely for updates from both the White House and the Supreme Court, hoping for stability in trade policy that would allow them to plan for the future without fear of sudden changes in tariffs or regulations.