MARKETS have risen after Donald Trump dropped his tariff threat to Europe and the UK – but experts have dubbed it as a “nervous sugar rush” as uncertainty dominates.
Trump said he had struck a deal on Greenland after talks with NATO – as he dropped planned tariffs on eight European countries including the UK.
Stock markets surged overnight with the Nikkei in Japan rising nearly 2% while the Kospi in South Korea passed the 5,000 mark for the first time.
He said on Truth Social: “Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region. This solution, if consummated, will be a great one for the United States of America, and all NATO Nations.
“Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland.”
Markets hate uncertainty
Scott Gallacher, Director at Leicester-based Rowley Turton, said Trump is bringing uncertainty to the markets.
He added: “Markets will be relieved the tariff threat has gone away, at least for now. But markets hate uncertainty, and with Donald Trump you get far too much of it. What’s interesting is that even with the latest threats, markets mostly ignored him.”
Rohit Parmar-Mistry, Founder at Burton-on-Trent-based Pattrn Data, urged world leaders to stand up to Trump.
He continued: “We are witnessing a masterclass in failed gentle parenting on a geopolitical scale. Trump threw a tantrum about Greenland, threatened to smash the economic toys with tariffs, and instead of the naughty step, NATO leaders rushed in to give him a ‘framework’ biscuit just to make the screaming stop.
“The market surge, with the Kospi passing 5,000, isn’t a sign of economic health; it’s a nervous sugar rush. We’re celebrating because the house didn’t burn down, conveniently ignoring that the arsonist is still standing outside holding a box of matches. By handing him a vague ‘win’ to save his face, we’ve simply taught him that holding a gun to the global economy is a valid negotiation tactic.
“You don’t negotiate with a tantrum; you outlast it. Until leaders find their spine and draw actual boundaries, we are destined to repeat this cycle. Today the markets cheer, but ordinary people will eventually pay the price for this volatility. Stop managing his moods and start calling his bluff.”
Nervous sugar rush
Colette Mason, Author & AI Consultant at London-based Clever Clogs AI, said Trump has now lost the trust of his allies.
She added: “The row over Greenland, and the renewed threat of tariffs, underlines just how brittle economic interdependence becomes when power is asserted through disruption rather than cooperation. What matters here is not Greenland itself, but the signal this sends about a deeper change in how the global political economy now operates.
“Trade policy is no longer primarily about rules and reciprocity, but about leverage, pressure, and the willingness to inject uncertainty into allies’ economies. Even though the tariffs were shelved after a loosely defined ‘framework’ deal, the mere fact they were contemplated against allies turns uncertainty itself into an economic cost.
“Once trade becomes a coercive instrument, trust between partners is weakened in ways that are hard to rebuild. The real vulnerability now lies less in the level of any given tariff, and more in the growing burden of structural unpredictability imposed on businesses, investors, and ultimately households.”
