Why Are Global Markets Shaking After Trumps Fresh Tariff Threats Over Greenland?
Source: Kapitales Research
Highlights:
Global markets turned volatile after US President Donald Trump threatened new tariffs of up to 25% on goods from eight European countries over Greenland-related demands.
European and Asian equities fell, while the euro rebounded to $1.1628 at the time of writing as broad US dollar selling lifted major currencies.
Investors fear renewed trade friction could weigh on global growth, reviving concerns seen during previous tariff-driven market shocks.
Global financial markets came under pressure after US President Donald Trump reignited trade tensions by threatening sweeping new tariffs on several European nations, unsettling investor confidence and triggering a broad risk-off move. At the time of writing, stocks were sliding across Europe and Asia, while the US dollar weakened against major currencies.
Tariff Threats Rekindle Trade Fears
Trump announced new US import tariffs of 10% from February 1 on products from eight European nations, warning the rate would lift to 25% from June 1 without an agreement on Greenland. The comments immediately injected fresh uncertainty into global markets, reviving memories of previous trade disputes that rattled investors. Several European Union leaders criticised the move, with France calling the threat “economic blackmail” and floating the idea of previously unused countermeasures.
Markets React as Risk Appetite Fades
In Europe, EUROSTOXX 50 and DAX futures both fell around 1.1 per cent, while Japan’s Nikkei slipped about 1 per cent as risk aversion took hold. The euro initially dropped to its lowest level since November before rebounding, rising 0.26 per cent to $1.1628 at the time of writing, as broad-based dollar selling lifted rival currencies. US stock futures were also under pressure, down roughly 0.7 per cent in early Asian trading, although Wall Street’s reaction was delayed due to the Martin Luther King Jr. Day holiday.
Uncertainty Clouds the Outlook
Analysts warned that hopes of calmer trade conditions may have been premature. While markets proved resilient through much of 2025 despite earlier tariff threats, Trump’s latest comments suggest trade tensions could once again become a major risk factor. Based on available reporting, these remarks appear to be newly disclosed, helping explain the sharp market response and renewed volatility across global assets.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Why Are Global Markets Shaking After Trumps Fresh Tariff Threats Over Greenland?
Highlights:
Global financial markets came under pressure after US President Donald Trump reignited trade tensions by threatening sweeping new tariffs on several European nations, unsettling investor confidence and triggering a broad risk-off move. At the time of writing, stocks were sliding across Europe and Asia, while the US dollar weakened against major currencies.
Tariff Threats Rekindle Trade Fears
Trump announced new US import tariffs of 10% from February 1 on products from eight European nations, warning the rate would lift to 25% from June 1 without an agreement on Greenland. The comments immediately injected fresh uncertainty into global markets, reviving memories of previous trade disputes that rattled investors. Several European Union leaders criticised the move, with France calling the threat “economic blackmail” and floating the idea of previously unused countermeasures.
Markets React as Risk Appetite Fades
In Europe, EUROSTOXX 50 and DAX futures both fell around 1.1 per cent, while Japan’s Nikkei slipped about 1 per cent as risk aversion took hold. The euro initially dropped to its lowest level since November before rebounding, rising 0.26 per cent to $1.1628 at the time of writing, as broad-based dollar selling lifted rival currencies. US stock futures were also under pressure, down roughly 0.7 per cent in early Asian trading, although Wall Street’s reaction was delayed due to the Martin Luther King Jr. Day holiday.
Uncertainty Clouds the Outlook
Analysts warned that hopes of calmer trade conditions may have been premature. While markets proved resilient through much of 2025 despite earlier tariff threats, Trump’s latest comments suggest trade tensions could once again become a major risk factor. Based on available reporting, these remarks appear to be newly disclosed, helping explain the sharp market response and renewed volatility across global assets.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au