Trump’s Greenland Dispute Roils Markets as He Threatens Tariffs on Eight European Nations

Overview

• President Donald Trump set 10% tariffs from February 1 on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, with rates rising to 25% from June 1 if opposition continues.
• European governments are discussing large retaliatory measures against U.S. goods, with the Financial Times reporting options totaling up to €93 billion.
• Risk-off trading hit equities, with the Stoxx 600 down about 1.18% and France’s CAC 40 off 1.62%, while S&P 500 and Nasdaq futures fell 1.09% and 1.57%, respectively.
• Safe-haven demand drove record highs for precious metals, with gold at $4,690.59 per ounce and silver at $94.12.
• Oil prices declined on trade-war demand concerns, the dollar ticked higher versus the real as the DXY eased, and U.S. markets were closed for Martin Luther King Day, reducing liquidity.