European defence shares moved lower on Thursday after U.S. President Donald Trump said he would not move ahead with new tariffs on European countries, pointing to progress toward “the framework of a future deal” related to Greenland.
In early trading, Germany’s Rheinmetall (TG:RHM) fell around 2% by 09:33 GMT. Italy’s Leonardo SpA (BIT:LDO) declined 1.8%, while France’s Thales (EU:HO) was down 1.2%. Sweden’s SAAB (BIT:1SAAB) dropped 2.2%.
Trump said the shift in stance followed discussions with NATO secretary-general Mark Rutte, which he described as “very productive.” He added that talks would continue and could result in an agreement that, “if consummated,” would be “a great one” for both the United States and NATO allies.
“Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st,” Trump wrote on Truth Social. He also noted that “additional discussions are being held concerning The Golden Dome as it pertains to Greenland,” referring to his proposed missile defence initiative.
Speaking later on Wednesday in an interview with CNBC, Trump confirmed that the tariff threat had been withdrawn. “We took that off the table,” he said, referring to duties previously aimed at European nations opposing a U.S. takeover of Greenland. “Because we had pretty much the concept of a deal.”
He suggested the emerging framework could include Greenland’s natural resources. “They’re going to be involved in mineral rights and so are we.”
The comments marked a further retreat from earlier tariff rhetoric and signalled a softer tone on Greenland. They came just hours after Trump told an audience at the World Economic Forum that he would not use force to acquire the territory from Denmark, while urging European leaders to back the proposal.
Europe, Trump said, faced a clear decision. “You can say yes and we will be very appreciative, or you can say no and we will remember.”
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