On 21/1, German Finance Minister Lars Klingbeil cautioned against premature optimism on ZDF television, following President Trump's unexpected announcement of a framework for a Greenland agreement and his retraction of tariff threats against Europe.

"Dialogue between the parties is a positive sign", Klingbeil stated. "However, we need to wait a bit longer and should not expect too much too soon." Earlier this week, he also declared that France and Germany "would not be blackmailed" and would present a clear, unified response to US threats.

German Finance Minister Lars Klingbeil during a press conference in December 2025 in Berlin. Photo: *Reuters*.

Germany, Europe's economic powerhouse, was among eight nations President Trump had threatened with increased import tariffs last week over the Greenland issue. On 17/1, President Trump posted on social media that he would impose import tariffs on eight European countries from February: Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, until the acquisition of the island was finalized.

However, at the World Economic Forum (WEF), President Trump withdrew this threat after an effective meeting with NATO Secretary General Mark Rutte. He stated that the parties "formed a framework for a future agreement concerning Greenland."

The market reacted positively to this news. Main indices on Wall Street reversed course, rising towards the end of the session. The S&P 500 closed up 1.1% at 6,875 points. The DJIA added 1.2%, equivalent to 588 points. Global spot gold prices reversed course this morning, currently down 44 USD to 4,786 USD an ounce. The US dollar also strengthened against the euro after several sessions under pressure.

Nevertheless, a spokesperson for the European Council (EC) stated that leaders of the European Union (EU) nations would still proceed with their emergency summit on 22/1 as planned. The agenda for the meeting is the Greenland issue.

Previously, the EU had considered several response options if President Trump had not withdrawn his threat, such as temporarily suspending trade agreements, imposing retaliatory tariffs on 93 billion EUR (108 billion USD) of US goods, and activating the Anti-Coercion Instrument (ACI). On 20/1, the European Parliament agreed to postpone ratification of a trade agreement reached in 7/2025 with the US.

Ha Thu (via Reuters)