Global stock markets are bracing for heavy losses when trading resumes this week after Donald Trump threatened to impose fresh tariffs on eight European countries unless they support his bid to acquire Greenland. The US president plans to levy 10% tariffs on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland from 1 February, rising to 25% by 1 June.
Weekend trading on IG’s markets indicates the London Stock Exchange’s FTSE 100 will fall by 0.9% on Monday, while Wall Street’s Dow Jones is set to drop 0.5% when it reopens on Tuesday. Analysts say the move has heightened geopolitical fears, driving a risk-off sentiment that is pushing precious metals higher. Gold edged up 0.6% to $4,625 an ounce, near last week’s record, while silver rose 0.5% to $90.41.
European leaders including UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen criticised the tariff threat, warning it undermines the Nato alliance. Susannah Streeter of Wealth Club called it a “migraine-inducing development” that would ultimately be passed on to American consumers.
German business groups urged the EU to retaliate. The VDMA engineering association called for use of the EU’s anti-coercion instrument, while the auto industry warned of “enormous” costs. The British Chambers of Commerce said the tariffs were “more bad news for UK exporters” and urged the government to push for implementation of the frozen UK-US trade deal.
