Transatlantic Trade Tensions: Trump's Tariff Threat Against Europe

European shares fell as President Trump threatened additional tariffs on European countries over Greenland's sale. The STOXX 600 dropped 1%, with major indices following suit. Trump's move risks inflaming geopolitical tensions, impacting luxury, auto, and tech stocks, while Bayer shares rose amid legal updates.

European stock markets faced a setback on Monday following President Donald Trump's threat to impose more tariffs on eight European nations unless the U.S. is allowed to purchase Greenland. This move reignited trade tensions and clouded previous negotiations.

The pan-European STOXX 600 fell 1% by mid-morning, with France's CAC 40, Germany's DAX, and London's FTSE 100 all declining. Trump's promise of a 10% additional tariff starting in February and an increase to 25% by June, should no deals be reached, has fueled discussions in Europe about countermeasures.

Luxury, automobile, and technology sectors took significant hits, with stocks plunging by notable percentages. Economic analysts note that Trump's tariff rationale is increasingly political, hampering market stability. Concurrently, a rise in Bayer shares provided a notable exception, driven by potential legal victories.

(With inputs from agencies.)