Just days after issuing a stern warning to impose new tariffs on eight European nations, President Donald Trump has officially called off the threat. The decision, announced following discussions at the World Economic Forum in Davos, provides temporary relief for global markets and particularly the pharmaceutical industry.
From threats to a “deal framework” Previously, Trump threatened to impose 10% trade duties (potentially rising to 25% in June) on Denmark, France, Germany, the UK, and four other nations over their opposition to U.S. ambitions regarding the autonomous territory of Greenland. However, after a meeting with NATO Secretary General Mark Rutte, the U.S. President announced that a “framework of a future deal” had been reached regarding Arctic security and missile defense systems. Consequently, the tariffs scheduled to go into effect on February 1st will no longer be imposed.
Stability for the pharmaceutical sector This quick reversal preserves a key trade agreement signed between the U.S. and the European Union (EU) in July 2025. That deal established a 15% tariff ceiling on most European imports, including pharmaceuticals. The drug industry, which spent much of 2025 navigating shifting import duty targets, now sees a path toward greater predictability in supply chains and costs.
European response While European leaders welcomed the de-escalation, many officials remain cautious. Denmark and Greenlandic authorities continue to emphasize that the territory is “not for sale.” Diplomats suggest this marks only the beginning of complex negotiations aimed at balancing U.S. national security interests with the sovereignty of Nordic nations.