European markets face renewed uncertainty as former US President Donald Trump threatens fresh tariffs targeting key EU nations over Greenland acquisition plans. The proposed levies – set to take effect February 1 – target Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway, escalating tensions barely a year after resolving previous trade disputes.
EU Considers Retaliatory Measures
EU ambassadors convened emergency talks this week to coordinate responses, including potential counter-tariffs under development since 2025. The bloc's $1.5 trillion trade relationship with the US remains at stake, particularly impacting Germany's automotive sector and Scandinavia's pharmaceutical industries.
Market Jitters Resurface
Asian markets showed early volatility Monday as analysts warned of supply chain disruptions. "This Greenland gambit could unravel 2025's hard-won trade balances," said Tony Sycamore, Sydney-based analyst at IG. Luxury goods firms from France and Italy brace for secondary impacts amid the geopolitical standoff.
The proposed 10% additional tariffs would compound existing duties imposed through 2025, with EU officials labeling the move "economic coercion." Observers note the timing coincides with heightened NATO discussions about Arctic resource management, though Trump's social media statements focus exclusively on territorial acquisition.
