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Markets Slide After Trump Threatens New EU Tariffs Tied to Greenland

European leaders are preparing coordinated retaliation and a court ruling on tariff powers could soon determine whether the plan can take effect.

Overview

  • U.S. stocks fell sharply Tuesday as the Dow closed down 870 points with the S&P 500 off 2.06% and the Nasdaq down 2.39%, while the VIX rose above 20.
  • Trump said imports from eight European allies will face a 10% tariff on Feb. 1, rising to 25% on June 1 until the U.S. secures a deal to purchase Greenland, and he separately threatened a 200% duty on French wine and champagne.
  • Safe-haven metals surged to records as gold topped $4,700 an ounce and silver neared $95, the dollar weakened, and large tech shares led equity declines.
  • Treasury yields climbed with the 10-year near 4.29% and the 30-year around 4.92% as a sell-off in Japanese government bonds intensified global bond pressures.
  • EU officials set an emergency summit and signaled a potential $100+ billion counter-tariff package and possible use of the Anti-Coercion Instrument, while Danish and Greenlandic leaders reiterated the island is not for sale and a Supreme Court decision on tariff authority is awaited; a Danish pension fund also said it will exit U.S. Treasuries this month.