Global Markets React to U.S.-Europe Trade Tensions over Greenland

The U.S. threatens European goods with tariffs, causing global stock declines and rising gold and silver prices. European leaders rebuke the tariffs as blackmail. The financial markets respond with caution as uncertainty looms and leaders prepare for the World Economic Forum in Switzerland.

Global markets experienced a turbulent Monday as President Donald Trump's threats of additional tariffs on European imports sent stocks sliding and propelled gold and silver prices to record levels. Trump's aim to pressure Europe until the U.S. can purchase Greenland stoked fears of a full-scale trade war.

With U.S. equity markets closed for Martin Luther King Jr. Day, futures markets reacted sharply, and the STOXX 600 index in Europe dropped significantly. Major European stock exchange indices and those in Asia also faltered. Meanwhile, European leaders condemned Trump's tactics, while the EU hinted at retaliatory measures.

Key financial figures like George Lagarias and Kallum Pickering noted the cautious but telling initial market response. As global leaders prepare for the World Economic Forum in Davos, tension remains palpable, with significant focus on potential economic repercussions from these tariff threats.