Europe stocks drop as Trump links Greenland bid to fresh tariffs
“European markets fell after Donald Trump threatened new tariffs on several European countries and linked tougher measures to a proposal for the US to buy Greenland.”
Key points
- European markets fell after Donald Trump threatened new tariffs on several European countries and linked tougher measures to a proposal for the US to buy Greenland.
- Luxury, auto and tech stocks led losses as officials in Europe discussed possible countersteps.
European shares opened lower on Monday as renewed trade tensions rattled markets after US President Donald Trump threatened new tariffs targeting multiple European countries. The pan-European STOXX 600 slid in morning trade, while major national indexes in France and Germany also fell, reflecting a broad risk-off mood.
According to the report, Trump said imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the UK would face a 10% tariff from February 1. He further warned the tariff rate would rise to 25% by June 1 unless an agreement is reached that would allow the United States to purchase Greenland.
European officials criticised the move as coercive and weighed possible countermeasures, including tariffs on a large tranche of US imports and steps under the EU’s Anti-Coercion Instrument. Analysts said the strategy appeared driven more by politics than economics, as luxury, auto and technology shares led declines amid heightened volatility and thin US holiday trading conditions.
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