Trump's Tariff Threats Shake Global Markets Amid Transatlantic Tensions

US stock futures plunged after President Trump threatened extra tariffs on European imports due to their opposition against US control over Greenland. European leaders condemned the threats, intensifying transatlantic tensions. This geopolitical move has potential to disrupt US-European relations, impacting global stock markets and investor trust worldwide.

US stock futures experienced a sharp decline on Monday following President Trump's declaration to impose an additional 10% tariff on imports from eight European countries. The move comes as a reaction to their criticism of US intentions to control Greenland.

The targeted European nations, including Denmark, Norway, and France, issued a stern joint statement, labeling Trump's threats as detrimental to transatlantic relations and potentially provoking a hazardous downward spiral. The S&P 500 and Dow Jones Industrial Average futures fell by 0.9% and 0.8%, respectively.

Stephen Innes of SPI Asset Management attested that this geopolitical action is testing the longstanding strategic and economic alliances with Europe. This backdrop of uncertainty could obstruct automatic capital flow into US assets, signaling a strategic shift rather than a short-term market reaction.

(With inputs from agencies.)