Trump threatens to impose tariffs on Greenland-related countries, European stock markets may face sharp declines on Monday

On January 19th, CNBC reported that U.S. President Trump’s latest tariff stance has triggered significant market tension, with European stock markets facing obvious downside pressure at Monday’s open. Trump warned that if some European countries oppose the U.S. plan to acquire Greenland, the U.S. will gradually increase tariffs on goods from those countries, which quickly impacts investors’ risk appetite.

According to IG’s pre-market forecast, the UK FTSE 100 index is expected to open about 0.5% lower, the German DAX index may fall by 1.23%, the French CAC 40 index could decline by approximately 1.63%, and the Italian FTSE MIB index is expected to drop by 1.24%. Market sentiment has weakened noticeably over the weekend, with funds preemptively pricing in the potential escalation of trade friction.

Trump stated on Saturday via his social platform Truth Social that if an agreement on the “comprehensive acquisition of Greenland” cannot be reached, the U.S. will impose a 10% tariff on goods from eight European NATO member countries starting February 1, and raise the rate to 25% by June 1. The involved countries include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.

Many European leaders have explicitly opposed this, deeming the tariffs unacceptable and publicly supporting Denmark’s stance. Market concerns suggest that this stance could trigger a new round of transatlantic trade tensions, further suppressing European exports, corporate earnings expectations, and overall stock market valuations.

On the macro level, investors will also focus on the World Economic Forum held in Switzerland this week. Trump is scheduled to speak on Wednesday, and the market will look for more clues regarding trade policies, geopolitical issues, and the U.S. economic stance. Any further tough rhetoric could amplify short-term volatility in European markets.

In terms of data, Eurozone inflation figures are set to be released this week. If inflation pressures combine with trade uncertainties, it could further limit the European Central Bank’s policy maneuvering space. Analysts note that European stock markets are currently highly sensitive to external political risks, and the Greenland tariffs rhetoric has become a key variable influencing short-term trends.