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Trump's Greenland-Linked Tariff Threat Rattles European Markets

EU leaders plan a special summit under Supreme Court uncertainty over presidential tariff powers.

Overview

  • President Trump announced tariffs on certain imports from eight European NATO countries starting at 10% on February 1 and rising to 25% on June 1 in connection with the Greenland dispute.
  • Germany’s DAX slipped about 1.2% and briefly fell below 25,000 points, while the EuroStoxx 50 declined 1.6%.
  • Shares of BMW, Mercedes-Benz, Volkswagen, Porsche and supplier Continental dropped, with losses reaching roughly 4%.
  • EU Council President António Costa is moving to convene a special summit to coordinate the bloc’s response, possibly on Thursday.
  • A pending U.S. Supreme Court ruling on whether the president can impose such tariffs unilaterally could arrive this week, and gold and silver set record highs as investors sought safety.