📌 The "Arctic Truce": Key Context

The sudden reversal follows a high-stakes meeting between President Trump and NATO Secretary General Mark Rutte at the World Economic Forum in Davos.
The Catalyst: The tariffs (10% starting Feb 1, rising to 25% in June) were explicitly tied to the U.S. demand for control or ownership of Greenland.
The "Framework": Trump announced the cancellation after reaching what he called a "framework of a future deal" regarding Arctic security and the "Golden Dome" missile defense system.
The Target Countries: The reprieve applies to the eight nations originally threatened: the UK, Denmark, Finland, France, Germany, the Netherlands, Norway, and Sweden.
📈 Immediate Market Reaction
Markets have reacted with a classic "relief rally."
Equities: European shares (STOXX 600) saw their biggest daily jump in nearly two months. U.S. futures also trended higher as the fear of a transatlantic trade war receded.
Currency: The EUR/USD has seen a modest recovery as the "trade risk premium"—the extra cost investors demand for holding Euros during trade uncertainty—began to evaporate.
Safe Havens: Gold and silver, which spiked earlier in the week due to the tension, have seen some retracement as "risk-on" sentiment returns.