Overview
- President Donald Trump threatened across‑the‑board tariffs of 10% on eight European countries from February 1, rising to 25% on June 1, until Washington secures control over Greenland, and also warned of possible 200% duties on French wines and champagne.
- European Commission President Ursula von der Leyen vowed a "firm, united and proportional" response, with options under review including the EU anti‑coercion instrument and a leaders’ meeting to coordinate action.
- France’s Emmanuel Macron called the tariff threats unacceptable and urged using EU trade defenses, while the European Parliament paused ratification work on the EU‑U.S. trade deal, according to reports from Davos.
- The IMF’s Pierre‑Olivier Gourinchas and Kristalina Georgieva cautioned that tit‑for‑tat tariffs would damage growth and confidence, urging the parties to reach an amicable solution to keep trade predictable.
- Risk assets weakened as U.S. equity futures fell up to 1.8%, gold climbed above about $4,700 per ounce and silver neared $94, while Argentina advanced plans to sign Trump’s Council of Peace in Davos and its central bank’s FX purchases topped $700 million year‑to‑date.