Overview
- President Donald Trump said imports from eight European countries will face a 10% levy from Feb. 1, rising to 25% on June 1 unless the United States is allowed to buy Greenland.
- The Euro Stoxx 50 fell 1.7% with Germany's DAX down 1.3% and France's CAC 40 off 0.7% as autos and luxury shares led losses during a U.S. holiday‑thinned session.
- Safe-haven flows lifted the yen and Swiss franc while short-dated government bond yields fell, including a four-basis-point drop in Germany’s two-year yield to 2.07%.
- EU officials opened talks on retaliation that could include tariffs on roughly €93 billion of U.S. goods and a pause on approving a July trade agreement, with the anti-coercion instrument under review.
- Analysts flagged manageable but rising risks, with Goldman Sachs estimating a 10% levy could shave up to 0.2% from EU GDP as investors largely treat the move as noise pending EU action and a U.S. Supreme Court ruling on tariff legality.