Trump Tariffs

Global stock markets rallied on Thursday as US President Donald Trump rolled back tariff threats linked to Greenland.

Attending the World Economic Forum’s annual summit in Davos, Switzerland, Trump said he had agreed the “framework of a future deal” on Greenland after meeting with Mark Rutte, NATO’s secretary-general.

The president claimed he would not use military force to seize the island from Denmark, and also dropped plans to impose extra tariffs on European countries from 1 February.

Details of the future deal are scarce, although investors were visibly cheered by the de-escalation.

Just after the opening bell in Europe, France’s CAC 40 traded 1.31% higher, Germany’s DAX saw a 1.23% lift, Spain’s IBEX 35 was up 1.05%, while Italy’s FTSE MIB rose 0.97%. The UK’s FTSE 100 traded 0.76% higher, while the wider STOXX Europe 600 was up 1.15%.

A global boost as tensions ease

The optimism in Europe mirrored movements in Asian markets, with Japan’s Nikkei 225 rising 1.73%, China’s SSE Composite Index up 0.14%, and Australia’s S&P/ASX 200 up 0.75%. Hong Kong’s Hang Seng drifted less than 0.1% higher, while South Korea’s Kospi saw a 0.87% boost, breaching the 5,000 mark for the first time and closing at a record 4,952.53.

Over the last 12 months, the Kospi has emerged as the world’s best-performing index on the back of the AI boom, with South Korea home to pivotal chipmakers Samsung Electronics and SK Hynix.

Semiconductor firms, which are already highly valued, saw their stocks climb even further after Nvidia CEO Jensen Huang spoke at Davos on Wednesday. Huang claimed that the AI transition would require trillions of dollars of investment, easing fears around overvaluations — at least for now.

The Philadelphia Semiconductor Index, which tracks 30 US semiconductor companies, closed 3.18% higher on Wednesday.

Looking at broader US sentiment, S&P 500 futures traded 0.40% higher, Dow Jones futures were up 0.20%, while Nasdaq futures rose 0.64%.

Gold and US Treasuries

As EU-US tensions eased, demand for safe haven assets slid.

As of around 9:30am CET, gold traded 0.19% lower at $4,828.30 per ounce — following a record high of over $4,800 reached on Wednesday.

The metal’s popularity is linked to its liquidity and status as an inflation hedge, but a weaker dollar and falling US interest rates have also boosted bullion.

When the greenback falls in value, this makes gold comparatively cheaper for foreign buyers and therefore drives up demand and prices. Low US interest rates also increase gold’s appeal compared to interest-bearing assets, as investors aren’t significantly losing out if they choose the metal over assets like bonds.

The Dollar Index, which tracks the greenback against six other currencies, traded less than 0.1% higher at 98.81 on Thursday.

Yields on long-term US bonds also slid after a spike earlier in the week, linked to Greenland tensions and threats to Federal Reserve independence as Trump prepares to name a new chair. Another reason for the earlier yield spike is volatility in Japan, with some investors moving money away from US assets into higher-yielding Japanese debt.

In the days ahead, markets will be watching for more details on Trump’s Greenland deal, as Denmark has stressed that the island’s sovereignty is not up for negotiation. An emergency summit between EU leaders will take place in Brussels on Thursday to address the US threat.

European lawmakers agreed on Wednesday to freeze the EU-US trade deal struck last summer, Euronews has learned, ratcheting up pressure on transatlantic relations after US President Donald Trump threatened fresh tariffs on several European countries who reject his insistence that the US should take over Greenland.

The agreement was reached last year after weeks of trade tensions triggered by the aggressive tariff policy Trump rolled out following his return to power. While a political agreement was reached in the summer, the deal still required formal implementation by the European Parliament.

Lead MEPs handling the file met on Wednesday afternoon and decided to suspend the process, officially postponing a vote that had been scheduled for next week in the Parliament’s Committee on International Trade.

Tensions intensified after Trump said on social media he would impose a 10% tariff from February on Denmark, Sweden, Norway, France, Germany, the Netherlands, Finland and the United Kingdom until “a deal is reached for the complete and total purchase of Greenland”. The rate would rise to 25% by June should no agreement be reached.

MEPs view the threat as a breach of the EU-US deal, which already imposes 15% US tariffs on EU goods while committing the bloc to cut its own tariffs on US industrial imports to 0%.

Lawmakers had been preparing amendments to the deal in the coming days, with many already describing it as unbalanced in the US’s favour.

On Saturday, Bernd Lange, the German MEP who chairs the Parliament’s trade committee, said work on the agreement should be suspended – a position adopted the same day by leaders of the Parliament’s main political groups, the EPP, S&D and Renew.

EU leaders will meet on Thursday night to prepare the bloc’s response to Trump’s threats, which many see as a form of blackmail.

This is a developing story.

Published on
21/01/2026 – 12:09 GMT+1

Gold soared to another record high on Wednesday, surpassing $4,800 per ounce, as leaders in Davos await the arrival of US President Donald Trump at the Swiss summit.

While the EU and US continue to clash over Trump’s plans to acquire Greenland, the precious metal has risen over 2% — with investors looking for a safe place to park their money amid renewed tariff threats. Silver prices, meanwhile, notched up 0.44% to $95.055.

“You’ll have to find out,” Trump said on Tuesday when asked how far he was willing to go to acquire Greenland. The US has failed to rule out military intervention, and is proposing extra tariffs on eight European countries if they fail to comply with his demands over the island.

After a record-breaking 2025, analysts remain optimistic about gold’s trajectory for 2026 as US interest rates fall, the dollar weakens, and central banks continue to add to their gold reserves.

When the greenback falls in value, this makes gold comparatively cheaper for foreign buyers and therefore drives up demand and prices.

Low US interest rates also increase gold’s appeal compared to interest-bearing assets, as investors aren’t significantly losing out if they choose the metal over assets like bonds.

Dollar dominance

Investors are betting that the next Federal Reserve chair, who will replace Jerome Powell when his term ends in May, will be more dovish than his predecessor — meaning they will be more focused on lowering interest rates than taming inflation risks.

The candidate will be nominated by President Trump, who has heavily criticised Powell for his cautious approach to policy easing over the last year.

Although central banks have been reducing their dependency on the dollar in favour of gold, experts stress that the greenback will not be usurped as the world’s reserve currency anytime soon, with the currency still making up roughly 57% of total central bank reserves. Even so, the greenback could see a gradual erosion of its status if US policy decisions continue to undermine its stability.

“We are taking the view that the dollar has some room to recover today,” said ING analysts in a note on Wednesday. They emphasised that a decline in the dollar a day earlier was linked to instability in the Japanese bond market, as well as fears that Europeans might start selling their US Treasury holdings.

“Japanese bonds have rebounded… and with Trump headed to Davos, we see some scope for de-escalation on the Greenland risk and fears of European dumping of US assets,” said ING analysts.

The Dollar Index, which tracks the greenback against six other currencies, traded less than 0.1% higher on Wednesday after falling on Tuesday.

Turning to stocks, Europe’s major indexes again found themselves in the red on Wednesday after two days of losses.

France’s CAC 40 had dropped 0.18% by around 11:30 CET, Germany’s DAX was down 0.68%, and Spain’s IBEX 35 lost 0.53%. Italy’s FTSE MIB was down 0.68%, the UK’s FTSE 100 slid less than 0.1%, while the broader STOXX Europe 500 tumbled 0.35%.

Ahead of the opening bell in the US, S&P 500 futures rose 0.34%, Dow Jones futures jumped 0.13%, and Nasdaq futures increased 0.19%.

Published on
20/01/2026 – 15:40 GMT+1

European wine industry leaders said on Tuesday that United States President Donald Trump’s threat to impose 200% tariffs on French wine if Paris does not join the “Board of Peace” for Gaza must be handled “with composure”, insisting the issue goes beyond the wine sector itself.

The wine and spirits sector has been at the centre of EU-US trade tensions since Trump’s return to power in 2025, with the US remaining the top export market for EU producers.

Negotiations over exemptions from the 15% US tariffs imposed under last summer’s EU-US trade deal had been dragging on, before the agreement itself was thrown into question this weekend by MEPs after Trump renewed his threats over Greenland.

“These are geopolitical issues that go beyond the sectoral stakes of wines and spirits,” the French Federation of Wine and Spirits Exporters (FEVS) said in a statement published on Tuesday. “As regards trade policy, this is an exclusive competence of the European Union. The issue must therefore be addressed at the European level, in a united and coordinated manner, and spoken with a single voice.”

Trump escalated tensions on Monday night, threatening a 200% tariff on French wine and champagne after an aide to French President Emmanuel Macron said France “does not intend” to accept an invitation to join the Gaza “Board of Peace” Trump is proposing.

“I’ll put a 200% tariff on his wines and champagnes and he’ll join, but he doesn’t have to join,” Trump told reporters.

Industry looks to Davos for a breakthrough

French wine producers are hoping talks in Davos this week between US, French and European leaders will help defuse the crisis.

“These statements by the President of the United States must be taken seriously, but with composure,” Gabriel Picard, President of the FEVS, said.

Industry representatives in Brussels echoed that stance.

“When we talk about wine, we are talking about terroir products, very well-known brands; it is an iconic product in France as well as in Europe,” Ignacio Sánchez Recarte, Secretary General of the European Committee of Wine Companies, told Euronews, explaining why the sector has been a frequent target in the EU-US trade dispute over the past year.

Trump had already singled out the EU wine and spirits industry in 2025, with the sector viewing itself as collateral damage of deteriorating transatlantic relations.

The EU-US trade deal struck last summer does not grant wines and spirits an exemption from the 15% US tariffs, despite efforts by the European Commission to secure special treatment.

The sector is considered strategic, with the US remaining the leading export destination for EU wine and spirits.

Sánchez Recarte noted that while wine exports to the US were particularly strong last year – accounting for 29% of EU exports – the surge was partly driven by US companies building up inventories ahead of new tariffs, and results later in the year were more concerning.

“After the EU-US trade deal, in July-August, we are seeing a significant decrease in the average value of exported wines,” he said.

Exports of the EU spirits sector alone fell by 25% between August and November 2025 compared with the same period in 2024, according to Eurostat.

Published on 20/01/2026 – 13:18 GMT+1
•Updated
13:22

European markets are weathering their second day of heavy losses this week, with sell-offs persisting as EU-US trade tensions simmer.

At around 12pm CET, France’s CAC 40 was down 1.28%, Germany’s DAX slid 1.52%, Italy’s FTSE MIB dropped 1.49%, while Spain’s IBEX 35 fell 1.66%. The UK’s FTSE 100 was down 1.11%, while the broader STOXX 600 dipped 1.23%.

Investors are watching nervously as world leaders gather in Davos for the World Economic Forum’s annual summit, and US President Donald Trump doubles down on his intention to conquer Greenland — threatening extra tariffs on eight European countries that stand in his way.

While the targeted nations are mulling their retaliatory options, Trump added extra fuel to the fire on Monday evening. Following reports that French President Emmanuel Macron had rejected an invitation to sit on Trump’s so-called “Board of Peace”, the US leader commented: “I’ll put a 200% tariff on his wines and champagnes and he’ll join.”

The Board of Peace was an idea initially proposed by President Trump as part of his plan to end the war in Gaza, although the initiative now seems to be aimed at mediating global conflict more broadly.

President of the European Commission Ursula von der Leyen has branded Trump’s tariff threats “a mistake”. “The European Union and the United States agreed to a trade deal last July. And in politics as in business — a deal is a deal,” she said during a Davos address on Tuesday.

In light of the recent threats on winemakers, major French beverage firms saw their stock suffer on Tuesday. LVMH, which owns Moët & Chandon, Dom Pérignon, and Veuve Clicquot, dropped 2.57% in Paris, while Rémy Cointreau fell 2.83%.

The losses came after a rocky day of trading for European firms on Monday, with the luxury goods and automobile sectors taking a significant hit.

On Tuesday, the STOXX Europe Luxury 10 was trading 1.88% lower, and the STOXX Europe 600 Automobiles & Parts Index fell 0.89% by just after midday.

Is ‘Sell America’ back?

Ahead of Tuesday market opening in the US, S&P 500 futures were down 1.53%, while Dow Jones futures slipped 1.38%. Nasdaq futures tumbled 1.91%.

Against the euro, the dollar fell 0.71% to 0.8523. The Dollar Index, which tracks the greenback against six other currencies, traded 0.9% lower at 98.340. Such movements have once again raised fears of a ‘Sell America’ trade, meaning a major investor retreat from US assets, repeating a narrative that emerged last year in the wake of Trump’s ‘Liberation Day’ tariffs.

US Treasury Secretary Scott Bessent nonetheless sought to ease jitters at Davos on Tuesday. “I am confident that the leaders will not escalate, and that this will work out in a manner that ends up in a very good place,” he said.

“This is the same kind of hysteria that we heard on April 2,” he said. “There was a panic. And what I’m urging everyone here to do is sit back, take a deep breath, and let things play out.”

Yields on US bonds jumped on Tuesday, with the 10-year Treasury yield trading around six basis points higher at 4.291%. 20- and 30-year Treasurys also increased — making it more expensive for the government to service its debts.

Meanwhile, heightened demand for safe-haven assets gave a boost to precious metals, with gold and silver rising 3.04% and 7.97% respectively.

Only a select number of European stocks managed to escape the wider downturn on Tuesday. One standout performer was British fintech Wise, which rose around 14% after a strong earnings report. The firm said it was looking to move its primary listing to the US in the first half of this year as it seeks partnerships with American banks.

European markets opened lower on Monday as threats from US President Donald Trump reignited a trade war with traditional allies across the Atlantic.

At around 10am CET, France’s CAC 40 had slipped 1.28%, Germany’s DAX was down 1.02%, and the UK’s FTSE 100 dropped 0.27%. Spain’s IBEX 35 fell 0.59% and Italy’s FTSE MIB slid 1.43%. Meanwhile, the wider STOXX 600 fell 0.87%.

European leaders will meet this week to decide how best to respond to threats from US President Donald Trump to acquire Greenland, a semi-autonomous Danish territory.

Washington announced on Saturday that eight European countries would face a 10% tariff on their US exports from 1 February unless they support the US’ proposal to purchase Greenland. This rate will rise to 25% in June if no deal is reached.

Specifically, the threat targets Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.

Standing firm in their support for Greenland’s right to self-determination and Denmark’s sovereignty, EU member states are weighing their options. One possibility is the use of retaliatory tariffs on €93bn of US goods, a measure that was floated then abandoned last year during an earlier trade stand-off with Washington. Another proposal includes the activation of an anti-coercion tool, which enables the EU to impose punitive economic measures on a country seeking to force a policy change.

Shares in European carmakers saw a significant drop on Monday morning, with the STOXX Europe 600 Automobiles & Parts Index falling more than 2% and hitting a 52-week low. BMW shares were down 4.10% at just after 10am CET, while Volvo and Volkswagen were down 2.21% and 3.43% respectively.

Europe’s luxury goods sector also opened lower, with the STOXX Europe Luxury 10 dropping almost 3%.

On the other hand, safe haven assets such as gold and silver hit new highs as investors moved away from riskier assets such as crypto. Bullion neared $4,700 an ounce on Monday, climbing over 1.66%, and silver prices crossed the $94 threshold.

Defence stocks also rallied in Europe, with the STOXX Europe aerospace and defence index up 0.49%. Thales rose 2.41%, Rheinmetall was up 2.89%, Leonardo shares jumped 3.05%, and BAE systems rose 1.77%.

Markets in Asia also saw a downturn. Japan’s Nikkei 225 fell 0.65%, Hong Kong’s Hang Seng dropped 1.05%, and Australia’s S&P/ASX 200 slipped 0.33%. Korea’s Kospi and China’s SSE Composite Index both bucked the trend, closing higher.

US markets are closed today for the Martin Luther King public holiday, but S&P futures slid around 1.18%.

As of around 10am CET, the dollar had fallen 0.21% against the euro.

With last summer’s trade deal between the US and the EU hanging in the balance, investors will be focused on further announcements from the two trading powers.

“The flare-up over Greenland and the threat of renewed tariffs are very unwelcome for European industry. This comes at a time when industrial sentiment has finally started to rise, with businesses seemingly having learnt to live with last year’s tariff volatility,” said analysts from ING.

“These developments will focus European minds on the need to generate domestic demand and potentially even push through sluggish reforms such as the Savings and Investment Union, to allow Europe’s capital markets to better compete with those of the US,” they added.

Markets will also be tracking announcements coming from the World Economic Forum in Davos, Switzerland, which starts this week. Trump will address the Forum on Wednesday.

Pressure is growing on European leaders to deploy its trade bazooka against the United States after President Donald Trump threatened fresh tariffs if Denmark does not agree to sell the territory of Greenland. In a scenario of coercion, the EU counts with a powerful tool in the anti-coertion instrument, and calls are intensifying for Brussels to trigger it.

But how does it work? Euronews explains:

What is the anti-coercion tool?

Adopted in 2023, the tool was designed with the US and China in mind as the world’s two biggest economies become more assertive in pushing their national interests through tariffs and the weaponisation of natural resources.

Under the existing legislation, economic coercion exists when a third country “applies or threatens to apply measures affecting trade or investment in order to prevent or obtain the cessation, modification or adoption of a particular act by the European Union or a member state.”

President Trump is threatening tariffs from February 1 ranging from 10% to 25% if Denmark does not agree to sell Greenland by June. On paper, it looks like coercion.

Why is the anti-coercion tool seen as bazooka?

Last year, the EU mulled different options of possible retaliation as the US threatened to hammer the bloc with tariffs on Liberation Day.

Brussels drew up a list of American items that would be hit, affecting states mostly ran by Republican governors, in a tit-for-that move. At the peak of transatlantic tensions, the EU said it would target €93 billion worth of goods including bourbon, airplane components which would have dented Boeing, soybeans and poultry among other items.

Ultimately, the EU decided not to retaliate and took a deal which tripled tariffs on the bloc to 15% while cutting duties to zero on American industrial goods. While the deal was seen as imbalanced and unfairly tilted in favour of Washington, the Commission said it had provided clarity and stability for businesses in a difficult geopolitical scenario.

At the time, the idea of using the trade bazooka was only floated, but never seriously considered. That is because the anti-coercion tool was seen as the nuclear option.

The ACI allows the EU to shut off access to the European single market representing 500 million consumers. It limits trade licenses and access to public procurement tenders. For American services, it means the European market would be off the table.

How is coercion established and how long does it take?

The tool is not automatic, and it takes time to implement. For many, the power behind it comes in the form of deterrence. Once the trade bazooka is out, it is clear that the EU means business and is willing to enter a fight with the single market as leverage.

Once the question of coercion is raised, the European Commission has four months to assess the case and the actions of the third country in question, after which EU member states must decide by qualified majority whether to activate the instrument or not.

If that happens, a negotiation phase with the country in question begins.

If talks fail, the EU can deploy a broad range of countermeasures beyond tariffs.

The tool covers services, investments and access to public procurement. It also allows for steps such as excluding foreign companies from EU tenders or partially suspending the protection of intellectual property rights.

The implications are such, that any response under the ACI must be “proportionate and not exceed the level of injury to the European Union”.

What are the implications for the EU?

There are many second-round effects. The first one stems from the fact that the ACI has never been used. Member states have often talked about it, but don’t really know what kind of implications it could bring about on political and geoeconomic terms.

This is why countries from Germany to Italy have repeatedly cautioned against deploying it too quickly or without a good legal case behind it. Berlin and Rome were two of the member states most in favour of cutting a deal with the US last year.

Last year, even as the US threatened to punitive tariffs on the bloc, the EU also feared that deploying such strong measures against the US could backfire and damage the transatlantic relation. The EU still hopes to keep Washington engaged in the continent’s security through NATO and discussions around Ukraine’s peace settlement.

Beyond the US, the EU also considered triggering the ACI after China began weaponising the export licensing of rare earth and critical minerals – vital for Europe’s tech and defence industries – at the end of last year. Ultimately, the EU opted for dialogue.

So, what happens next?

The EU could decide this time around President Trump has crossed the line and gather a qualified majority to trigger the anti-coercion instrument. European leaders have said they will not be “blackmailed” and expressed full solidarity for Denmark and Greenland.

If they go ahead, that will likely mean a new trade war and fresh escalation, but it may be the price to pay for the European Union to defend the sovereignty of a member state.

Unlike the EU-US deal signed last year where a compromise was deemed possible, Copenhagen has repeatedly said there is no room for negotiation when it comes to transferring the sovereignty of Greenland and has rejected any possibility of a sale.

The EU could go back to the retaliatory tariffs it drew up last year and – this time around – implement them hoping the impact on US companies and consumers ahead of the midterm elections where Republicans risk losing control of the House of Representatives and the Senate prompts Trump to change course.

One thing is clear, if the tariffs on Denmark and its allies go into effect on February 1, the European Union and the United States will enter a new trade war.

European leaders pledged a united response after US President Donald Trump threatened fresh tariffs until Denmark agrees to sell Greenland in an unprecedented escalation that could trigger a new trade war and break the transatlantic alliance.

From Ursula von der Leyen to French President Emmanuel Macron and German Chancellor Friedrich Merz, EU leaders vowed to stay “united, coordinated and committed” to upholding Europe’s sovereignty after the Trump administration said additional tariffs of 10% would apply on eight European countries starting February 1.

In a social media post on Saturday, Trump said all products from Denmark, Sweden, Norway, France, Germany, the Netherlands, Finland and the United Kingdom would be subject to an additional 10% tariff, which could be increased to 25% by June, to be paid until “a deal is reached for the complete and total purchase of Greenland.”

Greenland is a semi-autononomous territory belonging to Denmark. Earlier this week, the same group of countries said they would deploy a joint mission to the island, which has prompted the ire and retaliation of the White House in the form of new tariffs.

Last summer, the EU and the US signed a deal which tripled duties on European products to 15% while lowering tariffs to zero on US industrial goods. At the time, Brussels indicated the deal, which saw major EU concessions in favour of Washington, was the price to pay for US engagement in Ukraine and global stability.

While it was not immediately clear how the tariffs announced Saturday would be stacked up, the threat of additional duties risks triggering a new trade war between the two.

EU Council president António Costa said he would coordinate leaders in their response.

Ursula von der Leyen joined echoed his remarks saying “tariffs would undermine transatlantic relations and risk a dangerous downward spiral. Europe will remain united, coordinated and committed to upholding its sovereignty.”

While the Commission negotiates matters related to trade on behalf of the 27 and has exclusive competences over commerce, the White House could go after individual countries by targeting specific products and industries related to those countries.

European leaders condemn ‘unacceptable’ threats

The Trump administration has upped the bellicose rhetoric around Greenland in recent weeks saying the territory will have to be transferred to the US for national security matters “the easy way or the hard way” and rejected suggestions that Denmark, assisted by its European allies, is capable of taking care of the territory and Arctic security.

Earlier this week, Danish officials held talks with American officials, pushing back against “a narrative” that Russian and Chinese warships are allowed to circle freely in Greenland. Danish intelligence says no Chinese ship has been spotted in a decade.

In a show of support for Denmark, a group of European countries joined an exploration mission to Greenland. They all now face tariffs from the Trump administration as a result.

Danish foreign minister Lars Løkke Rasmussen said he was “surprised” by the White House reaction and suggested that the purpose of the European mission is to “enhance security in the Arctic” as suggested by the White House.

Meanwhile, French President Emmanuel said the EU would not be intiminated.

“No intimidation or threat will influence us – whether in Ukraine, in Greenland or elsewhere in the world,” Macron wrote in a social media post on X.

“Tariff threats are unacceptable and have no place in this context. Europeans will respond in a united and coordinated manner if they are confirmed.”

Swedish Prime Minister Ulf Kristersson echoed his remarks, saying “we will not allow ourselves to be blackmailed” in one of the most severe statements to date.

Parliament calls for EU to bring out the big trade bazooka

The latest spat calls into question the European strategy of appeasement when it comes to Trump and has revitalised calls to deploy its trade “bazooka” known as the anti-coercion instrument, which would allow the EU to severely retaliate against the US.

The tool adopted in 2023 to combat political blackmail through trade allows the EU to restrict third countries from participating in public procurement tenders, limit trade licenses and shut off access to the European single market.

Bernd Lange, a German parliamentarian and chair of the European Parliament’s trade committee, said business cannot go on as usual as “President Trump is using trade as an instrument of political coercion” on European allies.

He called to suspend the implementation of the reduction of tariffs on US goods and said the EU must now activate the anti-coercion instrument. “A new line has been crossed.”

Meanwhile, Manfred Webber, the powerful chief of the conservative European People’s Party, urged the EU Parliament to freeze the EU-US deal.

“Given Donald Trump’s threats regarding Greenland, approval is not possible at this stage. The zero tariffs on US products must now be put on holds,” he said Saturday.

Published on
01/01/2026 – 16:59 GMT+1

President Donald Trump has eased pressure on two key import sectors — furniture and pasta — by delaying or scaling back steep tariffs shortly before they were due to take effect on 1 January, 2026.

For furniture, Trump has postponed planned tariff increases on certain imported home goods for one year, keeping existing duties in place while allowing further negotiations with trading partners.

On Wednesday Trump signed a proclamation delaying the scheduled increases — originally set to take effect on Thursday — until January 1, 2027.

The order preserves the current 25% tariff on “certain upholstered wooden products,” kitchen cabinets and vanities, rather than allowing it to rise to 30% for upholstered furniture and 50% for kitchen cabinets and vanities as previously directed.

“The United States continues to engage in productive negotiations with trade partners to address trade reciprocity and national security concerns with respect to imports of wood products,” the White House said in a statement announcing the move.

The furniture tariffs were imposed in September 2025 under a broader push to reshape US trade relationships and protect domestic industries. In addition to the 25% on furniture and cabinets, the administration also placed a 10% duty on imported softwood timber and lumber late last year.

The higher rates that were set to begin this week would have hit imports from major suppliers like Vietnam and China particularly hard and come amid ongoing concern about rising consumer prices.

Separately, the US Supreme Court is expected to rule on the legality of some broad tariff measures imposed under national security authorities, a decision that could have wider implications for Trump’s trade strategy.

In contrast to the furniture delay the Trump administration has significantly reduced planned anti-dumping duties on Italian pasta, offering relief to several major brands after months of dispute.

The US Department of Commerce had initially proposed very high provisional anti-dumping duties — more than 91% — on certain imports of Italian pasta, on top of an existing 15% general tariff on EU food products.

Following a review and consultations with Italian authorities, the United States lowered those planned tariffs sharply. La Molisana will face a 2.26% duty, Garofalo will face a 13.98% duty and eleven other Italian producers will face 9.09% duties.

“The redefining of these tariff rates is a testament to the US authorities’ recognition of our companies’ effective will to cooperate,” Italy’s foreign ministry said in a statement.

Italy had been working with both the US government and the European Commission since October 2025 to find a solution to the dispute.

The US market remains crucial for Italian pasta producers. Exports of pasta to the United States were estimated at about €671 million in 2024, representing roughly 17% of Italy’s total pasta exports.