Markets brace for falls after Trump threatens tariffs on eight European countries

Global stock markets were preparing for falls after Donald Trump threatened eight European countries with fresh tariffs until they support his ambition to acquire Greenland, the move set to take effect from 1 February at 10% and rise to 25% on 1 June. Brokerage IG’s weekend markets suggested losses for the London Stock Exchange when it reopens on Monday and for Wall Street when it reopens on Tuesday, with IG indicating the FTSE 100 was on track to fall about 0.9% and its Weekend Wall Street market pointing to a roughly 0.5% decline for the Dow.

Tony Sycamore of IG said the flashpoint has “heightened concerns over a potential unravelling of Nato alliances and the disruption of last year’s trade agreements with several European nations, driving risk-off sentiment in stocks and boosting safe-haven demand for gold and silver.” Gold was trading 0.6% higher at $4,625 an ounce on IG’s weekend bullion market, close to last week’s record high of $4,642, while spot silver was up 0.5% at $90.41/oz.

European leaders including the UK prime minister, Keir Starmer, and European Commission president Ursula von der Leyen criticised the move as a threat to the Nato defence alliance.

Key Topics

Business, Donald Trump, Greenland, Nato, Gold, Germany