January 21, 2026 —
Trump Retracts NATO Tariffs
As a result of a meeting with the Secretary General of NATO, Mark Rutte, President Trump announced that a framework of a future deal with respect to Greenland and, the entire Arctic Region, has started. According to a Truth Social Post, this solution will resolve the security concerns outlined by the Trump Administration. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. The President went on to state that he will not be imposing the tariffs that were scheduled to go into effect on February 1st.
Greenland Tariffs Complicate EU-US Relations and Trade Deal
The European Parliament has decided to freeze the EU-U.S. trade deal in response to Donald Trump’s threats to take over Greenland.
The deal was deeply unpopular across party lines as it was seen as overwhelmingly favoring Washington, but European Commission President Ursula von der Leyen sold it as the price of keeping Trump onside. However, Trump ratcheted up his rhetoric this week, saying “we need Greenland from the standpoint of national security,” and has repeatedly refused to rule out military intervention.
As a result, MEPs from the center-left, liberal, green, and left-wing groups say the deal should be blocked.
President Donald Trump on Saturday threatened levying sanctions against eight of America’s closest European allies as he escalates his campaign to acquire Greenland from Denmark.
Trump announced tariffs scheduled for February against the likes of the United Kingdom, France and Germany “until such time as a Deal is reached for the Complete and Total purchase” of the island, which he says is critical for American defense. President Donald Trump ruled out military force to acquire Greenland in his remarks to the World Economic Forum in Davos, Switzerland.
In a statement online, Manfred Weber, the president of the European People’s Party (EPP), said that the escalating U.S.-Europe tensions meant the Parliament would not vote in favor of the pact, which sets U.S. tariffs on imports from the EU at 15 percent in exchange for the bloc not applying levies on American exports.
Meanwhile, U.K. Prime Minister Keir Starmer has ruled out retaliation against Donald Trump’s threats, telling reporters on Monday “a tariff war is in nobody’s interest, and we have not got to that stage.” However, Chancellor Rachel Reeves warned Britain “would never rule anything out” when it comes to retaliatory tariffs against the U.S. administration, following Donald Trump’s latest Greenland tariff threats.
Some EU leaders have toughened their position and want the European Commission to ready its most powerful trade weapon against the U.S. if Donald Trump doesn’t walk back his Greenland threats.
Germany has joined France in saying it will ask the Commission to explore unleashing the Anti-Coercion Instrument at the emergency EU leaders’ summit in Brussels, according to five diplomats with knowledge of the situation. Pulling the trigger on the ACI would require the support of at least 15 countries in the Council of the EU.
House and Senate Democrats plan to force votes as soon as next month to block the European tariffs Trump announced over the weekend, according to two aides granted anonymity to disclose private scheduling. That, for now, is likely to be the main avenue of congressional accountability as the president amps up his campaign targeting the icy Danish territory.
COAC Issues Recommendations to CBP
Members of the Commercial Customs Operations Advisory Committee are urging CBP to provide more clarity on how to comply with Section 232 tariffs, as well as suggesting that CBP enable importers to use publicly available metal commodity pricing for valuation purposes, according to a list of recommendations that the committee voted on during its quarterly meeting on Jan. 14.
Each of the eight recommendations passed along to CBP addresses some aspect of complying with Section 232 tariffs.
COAC also is asking that CBP work with the Bureau of Industry and Security to clarify what component or article specifically is covered by the goods added to the Section 232 tariff list via the inclusion process, which would be the same way that BIS detailed the type of component or articles covered by its Section 232 steel and aluminum exclusions.
The committee also would like a time of at least two weeks between when Section 232 tariff inclusions are published in the Federal Register and when they would be implemented.
Other recommendations include: exempting cargo in-transit such that merchandise already loaded on a conveyance on or before the date the tariffs are implemented would be exempt from the tariffs; establishing a working threshold for a nominal value to deem a derivative as insignificant for a Section 232 tariff claim and create a disclaim option; allowing aluminum importers to declare “Other than Russia” origin when importers are unable to determine the exact single country of origin, but can confirm that the aluminum is not of Russian origin; and confirming with all ports and Centers of Excellence and Expertise that the Trade Information Notice is to be used as the primary means of communication with the trade.
Trump Administration Eyes Backup Plan if SCOTUS Rules Against the Administration
President Donald Trump has a backup plan to continue tariffs on imported goods if the Supreme Court knocks down his ability to impose duties using a 1977 emergency powers law, a top White House official said Friday.
“We can put a 10 percent tariff on right away,” White House National Economic Council Director Kevin Hassett said in an interview on Fox Business with Maria Bartiromo“There’s a special authority in circumstances like this, where there’s a 10 percent tariff that could last for six months, which would give you time to sort of iron things out.”
That remark appears to refer to Section 122 of the 1974 Trade Act, which allows the president to impose up to a 15 percent tariff on all countries for 150 days to address a “large and serious” balance of payments deficit. There’s also another authority know as Section 338 of the Tariff Act of 1930 that allows up to a 50 percent duty on countries that discriminate in trade against the United States.
Congress would have to approve any extension of a Section 122 tariff after 150 days has passed. But Hassett said the White House then could use other authorities like Section 301 of the 1974 Trade Act and Section 232 of the 1962 Trade Expansion Act “to to backfill the things that we’ve already achieved with these great deals with the countries,” referring to the trade agreements the Trump administration has negotiated.
A ruling in the high-profile case could come in the next ten days, when the justices are scheduled to issue more opinions, although the court has until the end of its term in late June or early July to issue the ruling.
Bessent: China has Fulfilled its Initial Soybean Commitment
China has fulfilled its initial commitment to buy 12 million metric tons of U.S. soybeans, Treasury Secretary Scott Bessent said in an interview Tuesday with Fox Business anchor Maria Bartiromo at the World Economic Forum meeting in Davos, Switzerland.
China, as part of a trade detente reached in late October with the U.S., agreed to buy 87 million metric tons of U.S. soybeans over the next four years, including 12 million by the end of 2025 and 25 million annually for three years after that.
Department of Commerce Revises License Review Policy for Semiconductors Exported to China
The Department of Commerce’s Bureau of Industry and Security (BIS) issued a rule revising its licensing policy for semiconductor exports to China. BIS will now review export license applications for the Nvidia H200, AMD MI325X, and similar chips on a case-by-case basis provided certain security requirements are met.
Yesterday’s rule follows President Trump’s December 8, 2025, announcement that the United States will allow the H200 and similar products to be shipped to approved customers in China to strengthen national security.
To qualify, license applicants must demonstrate that exporting these products to China will not reduce global semiconductor production capacity currently available to U.S. customers; that the Chinese purchaser has adopted export compliance procedures, including customer screening; and that the product has undergone independent, third-party testing in the United States to verify its performance and security.
Under Secretary for Industry and Security Jeffrey Kessler stated: “Export controls should evolve with changes in technology, while protecting national security. Permitting the sale of the H200 to China under controlled conditions will strengthen the American technology ecosystem.”
The text of the final rule is available on the Federal Register’s website here. The rule is effective immediately upon publication in the Federal Register. Relevant parties can direct questions to Lauren Weber Holley [email protected].
Taiwan Receives Tariff Relief
Taiwanese auto parts and derivative goods subject to the lumber 232 actions will be subject to a 15% tariff, rather than the 25% rates applicable to most countries, the Commerce Department announced. The reciprocal tariff for Taiwan will also be cut, from 20% to 15%, inclusive of most-favored nation’s duties. There will be no reciprocal tariff on generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources.
AGOA Moved to Spending Bill
The restoration of one of the Haitian trade preference programs and the African Growth and Opportunity Act, both of which expired Sept. 30, have been added to a package of annual spending bills that will head to the House floor this week, according to a spokesperson for the House Ways and Means Democrats.
If the spending package passes the House, the bill is extremely likely to pass the Senate by Jan. 30. Although the administration has been ambivalent about restoring AGOA — saying it only supports a one-year renewal — the president would not veto such a bill, because it would leave the Pentagon, Labor, Health and Human Services, Education, and Housing and Urban Development agencies unfunded, and thus create a partial government shutdown on Jan. 31.
Both programs will be extended through the end of 2028, and entries of goods that would have been duty-free if AGOA or HELP had still been in effect between Oct. 1 and the bill becoming law will have the tariffs refunded. Requests for liquidation or reliquidation would have to be filed within 180 days of enactment of the law, and CBP would have to pay within 90 days. No interest would be offered on the tariff refunds.
CATO Issues Tariff Complexity Chart
In December, the CATO Institute created a flowchart to map out the US tariff regime, which has become increasingly complex due to President Trump’s tariff actions under Sections 232, 301, and the International Emergency Economic Powers Act (IEEPA). The first version of this flowchart is available here, along with Cato’s analysis on the complexity of the US tariff system, which Cato recently updated here.
Company Executives Expect World Trade to Rise in 2026
Global supply chain and logistics executives expect world trade to increase in 2026 despite the likelihood of increased trade barriers and other policy uncertainty, according to a new annual outlook report from DP World, a global logistics company based in Dubai.
