Overview
- President Trump warned of 10% U.S. import tariffs on Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom from Feb. 1, rising to 25% on June 1 unless a Greenland deal is reached.
- Global risk assets fell as S&P 500 and Nasdaq futures dropped roughly 0.9%–1.1%, gold and silver hit record highs, and the dollar weakened against the yen and Swiss franc during holiday-thin U.S. trading.
- EU governments condemned the move and prepared options including reactivating a suspended €93 billion tariff package on U.S. goods as soon as early February and debating use of the bloc’s Anti‑Coercion Instrument.
- Analysts warned the dispute could upend recent transatlantic trade agreements and prompt portfolio shifts, noting Europeans hold about $8 trillion in U.S. stocks and bonds.
- Diplomacy will center on Brussels and Davos this week, with investors watching for any thaw before tariffs take effect and for signals on further escalation or negotiation.