Stocks slide after Trump threatens European allies with tariffs over Greenland

January 20, 2026

TL;DR

U.S. stock markets (S&P 500, Dow Jones, Nasdaq) opened lower.
President Trump threatened a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, escalating to 25% on June 1.
The tariffs are tied to Trump's desire to purchase Greenland and a perceived slight regarding the Nobel Peace Prize.
European markets (Paris, Frankfurt, London) also fell significantly.
European leaders are considering countermeasures, including retaliatory tariffs and the use of the EU's anti-coercion instrument.
U.S. Treasury Secretary Scott Bessent stated that U.S.-Europe relations remain strong and urged calm.
Analysts suggest the tariff threats are an 'overhang' but may ultimately be less impactful than threatened.
Upcoming economic events include U.S. corporate earnings, inflation data, and Federal Reserve and Bank of Japan policy meetings.
U.S. crude oil prices rose.
Gold and silver prices reached record highs as investors sought safe havens.

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