President Trump retreats from tariff threats as global markets rebound and Greenland deal nears

On January 21, 2026, President Donald Trump donald trumpbacked down from threats to impose tariffs against European countries in the European Union EU, easing trade war concerns that had previously sent shivers through global markets. Donald Trumpalso stepped back from using tariffs as leverage to seize Greenland in Denmark DK and instead suggested that a deal was in sight to end the dispute over the Danish territory. This policy shift triggered a significant recovery after Trump's trade threats sent shivers through global markets on Tuesday (January 21, 2026).

The S&P 500 GSPCposted its biggest one-day percentage gain in two months on January 21, 2026. This momentum continued into the following morning as S&P 500e-minis were up 41.75 points, or 0.60%, at 5:59 a.m. ET on January 22, 2026. During the same period, Nasdaq 100 IXICe-minis climbed 219.5 points, or 0.87%, while Dow Jones Industrial Average DJIe-minis added 201 points, or 0.41%. The CBOE Volatility Index VIX slid further from a two-month peak touched on Tuesday (January 21, 2026) as buyers quickly returned to stock markets in the US USfollowing the policy U-turn.