How Trump’s Greenland Threat Revived the TACO Trade

In his bid to gain control over Greenland, a semi-autonomous territory of Denmark, US President Donald Trump threatened to impose fresh tariffs on imports from eight European countries. The drama sent stocks sliding as investors flocked to gold and other safe-haven assets.

It didn’t take long for Trump to relent. Less than 24 hours after the S&P 500 Index dropped 2% on the initial tariff escalation with Europe, the US president said he and NATO Secretary General Mark Rutte had formed “the framework of a future deal” on Greenland. In no time, stocks were soaring again.