LONDON: Global markets faced fresh volatility on Sunday after US President Donald Trump threatened tariffs on eight European nations over Greenland. The proposed measures include a 10% import tariff starting February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain, rising to 25% on June 1 if a deal is not reached.
Read More: Trump says 8 EU countries will face 10% tariff for opposing
European leaders swiftly condemned the threat, warning it could undermine transatlantic relations. Britain, Denmark, Finland, France, Germany, the Netherlands, Norway, and Sweden issued a joint statement expressing concern over potential escalation, calling the move a risk to diplomatic and economic ties.
French President Emmanuel Macron signaled plans to seek EU activation of a never-before-used “anti-coercion instrument” should the tariffs materialize. Meanwhile, Italian Prime Minister Giorgia Meloni called the move a “mistake,” and Dutch Foreign Minister David van Weel described it as “blackmail.” British Prime Minister Keir Starmer intends to discuss the situation with Trump at the earliest opportunity, with UK officials labeling the threat “wrong” and “counterproductive.”
Market analysts warned of renewed uncertainty. Berenberg chief economist Holger Schmieding noted that hopes for a calmer trade environment had been dashed, while strategist Tina Fordham described the situation as the return of a US-EU trade war. French Agricultural Minister Annie Genevard added that tariffs could also harm US farmers and industrialists, highlighting mutual losses in the dispute.
Read More: EU states condemn Trump tariff threats, consider countermeasures
Norway, although targeted, said it was not considering immediate retaliation. Prime Minister Jonas Gahr Store urged caution, warning that a trade war could spiral downward to the detriment of all parties. Investors and businesses worldwide are now closely monitoring developments, bracing for potential impacts on currency, stock, and commodity markets.