Trump Threatens 10% Tariffs on Eight European Nations, Markets React Sharply
Updated (4 articles)
Trump Announces 10% Tariff on Eight European Nations President Donald Trump declared a 10% import tax on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, slated to begin on February 1 2026. The move targets countries opposing U.S. control of Greenland and follows a pattern of tariff rhetoric driving market volatility early in the year[1][2]. European leaders issued a joint rebuke, warning the threat undermines transatlantic ties and could trigger EU anti‑coercion measures[2][3].
U.S. Equity Indices Plunge Amid Tariff Threat The S&P 500 fell about 2% while the Dow Jones Industrial Average dropped roughly 870 points and the Nasdaq slid 560 points after the tariff announcement[1][2]. Technology stocks led the decline, with Nvidia down 3.6%, Amazon off 3.7%, JPMorgan Chase losing 2.9% and Caterpillar shedding 3%[2]. Earnings season added pressure, as 3M’s shares tumbled 7% following a mixed quarterly report and investors awaited further corporate results and Fed inflation data[1][2].
Safe‑Haven Metals Surge as Investors Flee Risk Gold surged 3.7% to a record $4,689.39 per ounce and silver jumped 6.9% to $94.08 per ounce, reflecting heightened demand for safe assets[4][1]. Bitcoin retreated from a brief rally above $96,000 to around $89,700 as risk sentiment waned[1]. Treasury yields rose, with the 10‑year note at 4.29% and the two‑year at about 3.60%, as investors priced in tariff risk alongside inflation concerns[1].
Europe Reacts with Unified Rebuke and Market Declines European stock indices slipped: Germany’s DAX fell 1.3% to 24,960, France’s CAC 40 dropped 1.9% to 8,102, and Britain’s FTSE 100 slid 0.4% to 10,190[3][4]. Luxury‑goods and auto stocks led the losses, while defense stocks gained on heightened geopolitical tension[4]. The IMF warned that escalating trade tensions pose a significant risk to global growth, emphasizing the broader macroeconomic stakes of the tariff dispute[4].
Sources
-
1.
King5: Markets slide as Trump threatens tariffs on eight European nations over Greenland: Details the immediate market fallout, safe‑haven rallies, Bitcoin dip, Treasury yield moves, and earnings‑season volatility on Jan 20 2026.
-
2.
AP: Wall Street slides as Trump threatens tariffs on eight NATO members: Highlights index drops, tech‑stock leadership in losses, gold/silver surge, European diplomatic backlash, and upcoming Fed inflation data on Jan 20 2026.
-
3.
AP: Trump tariff threat drags European shares and US futures: Reports European index declines, unified European condemnation, Asian market context, and earnings‑season outlook on Jan 19 2026.
-
4.
BBC: Gold and silver hit record highs as tariff threat rattles markets: Focuses on record bullion prices, European share slides, IMF growth warning, and limited U.S. market activity due to holiday on Jan 19 2026.
Timeline
2025 – China reports 5 % GDP growth for the year, while Hong Kong’s Hang Seng falls 1.1 % and Shanghai Composite rises 0.3%, underscoring mixed Asian market reactions to global growth trends[3].
Early Jan 2026 – The World Economic Forum convenes in Davos, and analysts warn the meeting proceeds under a “tariff overhang” that could shape negotiations on transatlantic trade[4].
Jan 19, 2026 – President Trump announces a 10 % import tax on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, to start Feb 1, with a possible rise to 25 % if a Greenland deal stalls, intensifying U.S.–Europe trade friction[1][3].
Jan 19, 2026 – European equity markets tumble: Germany’s DAX drops 1.3 % to 24,960, France’s CAC 40 falls 1.9 % to 8,102, and Britain’s FTSE 100 slides 0.4 % to 10,190, while U.S. futures decline as U.S. markets observe Martin Luther King Jr. Day[3].
Jan 19, 2026 – Gold spikes to a record $4,689.39 per ounce and silver reaches $94.08 per ounce as investors rush to safe havens, pushing gold miners higher and prompting the IMF to flag trade tensions as a chief growth risk[1].
Jan 19, 2026 – European leaders issue a unified rebuke, stating “tariffs undermine transatlantic ties and risk a dangerous downward spiral,” marking a rare joint condemnation since Trump’s return to office[3].
Jan 20, 2026 – Wall Street reacts to the tariff threat: the S&P 500 falls 2.1 %, the Dow drops 870 points, and the Nasdaq slides 2.3 %, with technology giants Nvidia and Amazon leading losses, while investors await the Fed’s PCE inflation gauge and upcoming earnings[2][4].
Jan 20, 2026 – Gold climbs another 3.7 % and silver jumps 6.9 % as safe‑haven demand surges, while Bitcoin retreats from a brief $96,000 peak to around $89,700, reflecting heightened risk aversion[4].
Jan 20, 2026 – Treasury yields split, with the 10‑year rate rising to 4.29 % and the two‑year holding near 3.60 %, as markets balance tariff risk against inflation pressures ahead of the Federal Reserve’s two‑week policy meeting[4].
Jan 20, 2026 – European officials signal possible retaliatory tariffs and consider invoking the EU’s anti‑coercion instrument, while the EU threatens reciprocal duties on U.S. imports, underscoring the escalation of trade hostilities[2].
Jan 20, 2026 – “The tariff stance is an overhang for the conference,” an analyst remarks, highlighting how the Davos agenda may be clouded by the looming U.S.–Europe dispute[4].
Jan 20, 2026 – Industrial conglomerate 3M reports mixed results and its stock slides about 7 %, adding to market volatility as other earnings from United Airlines, Intel and Johnson & Johnson loom later in the week[4].
Feb 2026 (expected) – Japan’s Prime Minister Sanae Takaichi plans to dissolve parliament and call a snap election, setting the political backdrop for Asian markets amid the transatlantic tariff saga[3].
Feb 2026 (expected) – The 10 % tariff on the eight European nations takes effect, with markets bracing for potential escalation to 25 % if the United States fails to secure a Greenland agreement, and EU leaders prepare coordinated counter‑measures[1][3].
Mid‑Feb 2026 (anticipated) – The Federal Reserve convenes its policy meeting, with the PCE index and inflation outlook likely shaped by the new tariff environment and its impact on global supply chains[2].