#TrumpWithdrawsEUTariffThreats

The "Greenland Truce" & Market Impact

Immediate "Risk-On" Recovery

The initial reaction has been a classic relief rally. European indices, particularly the DAX 40 (heavy on automotive and industrials) and the FTSE 100, saw significant gains as the threat to their export margins evaporated overnight. In the U.S., the Dow and S&P 500 recovered nearly all the losses triggered by the initial tariff announcement.

The Return of Policy Volatility

While the easing is positive, it reinforces a "volatility premium" in the market. Investors now realize that trade policy is being used as a high-stakes diplomatic bargaining chip (specifically for the "Golden Dome" missile shield and Arctic security). This means that while trends may be bullish today, they are highly sensitive to the next social media update or diplomatic framework.

Sector Winners

Automotive & Manufacturing: German and Italian producers, previously staring down 10–25% tariffs, are the primary beneficiaries.

Luxury Goods: French spirits and fashion houses breathed a sigh of relief as the specific "wine and champagne" threats were shelved.

Defense: With the "Golden Dome" missile defense shield now at the center of the NATO-Greenland framework, defense contractors are seeing renewed interest.

‍#Trump Cancels EU Tariffs – Market Relief or Temporary Truce?

The cancellation of the Feb 1 tariffs on European allies has triggered a massive relief rally, with the DAX up 1.2% and safe-haven demand for gold cooling slightly. While I recently took profits on my Gold/Silver hedges, I’m now rotating back into European Industrial ETFs (like VGK). My main idea is that while the Greenland 'truce' is temporary, the immediate removal of the 10% tariff threat allows export-heavy sectors to recover their lost January margins. Catching this wave before the next policy shift is key!