In a significant shift, President Trump has withdrawn his threat to impose tariffs on European allies, stepping back from what had been a key pressure tactic in his broader strategy to gain leverage over Greenland.

The move signals a recalibration in trade negotiations that had sent ripples through global markets. Many investors were watching closely—tariff threats typically create uncertainty in equities and commodities, which often translates to portfolio rebalancing across risk assets.

This reversal could ease some of the geopolitical tension that's been weighing on sentiment. While the Greenland negotiations remain ongoing behind the scenes, the removal of this tariff sword-of-Damocles suggests a more measured approach to bilateral relations.

For crypto traders tracking macro developments, this is worth noting: reduced trade friction generally supports risk appetite. When geopolitical pressure eases, liquidity tends to flow back into higher-yielding and more speculative assets. Whether this translates to sustained momentum will depend on how other policy signals unfold in the coming weeks.