Trade Policy and Tariffs

At Davos, President Trump said he and Dutch Prime Minister Mark Rutte had reached a "framework" on Greenland and tied that understanding to his decision to back off threatened European tariffs. Rutte told reporters the talks focused on Arctic security rather than Danish sovereignty, but European allies, Denmark, Greenland's premier and NATO officials say they were blindsided, that the deal's terms are unclear, and that further bilateral talks will now be set up with participants, timing and details to be determined.

President Trump on Dec. 31, 2025 signed a presidential proclamation delaying for one year planned tariff hikes that would have raised tariffs on upholstered furniture from the current 25% to 30% and on kitchen cabinets and vanities from 25% to 50% (the higher rates had been scheduled to take effect Jan. 1, 2026), leaving the September-imposed 25% tariffs in place. The White House framed the move as part of a "laser-focused" affordability push and ongoing trade talks — after recently rolling back some food tariffs — while economists warn such levies have pushed up consumer prices (household furnishings +4.6% year-over-year) and strategists say delays give the administration flexibility to ease costs for voters.