FTSE 100 and European Stocks Slip Amid Rising US-EU Trade Tensions
European markets opened under pressure on Monday, with the FTSE 100 (^FTSE) and other major indices falling as uncertainty around global trade escalates. The latest trigger? U.S. President Donald Trump’s announcement of potential new tariffs targeting European nations over Greenland.
Over the weekend, President Trump outlined plans to impose 10% tariffs on eight European countries, including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. These levies would take effect on February 1st, and could rise to 25% by June if no trade agreement is reached. The proposed tariffs cover “any and all goods sent to” the U.S. and are in response to what Trump describes as European obstruction of a U.S. Greenland purchase.
Trump’s remarks have added fuel to global trade tensions, as he noted: “China and Russia want Greenland, and there is not a thing that Denmark can do about it… Only the United States of America, under PRESIDENT DONALD J. TRUMP, can play in this game, and very successfully, at that!”
European capitals are already responding, with talks underway to consider counter-tariffs potentially reaching €93 billion ($107.7 billion) on American products.
In the UK, Prime Minister Keir Starmer addressed the situation from Downing Street, warning that a trade war would “not be in our interests.” He emphasized that the UK will continue to defend international law and maintain dialogue with allies to navigate the escalating tensions.
Investors are watching tariff-sensitive sectors closely. Carmakers, fashion brands, and other goods-oriented industries have seen share prices decline this morning.
Meanwhile, the broader market indicators reflect the geopolitical unease. The dollar index (DX-Y.NYB) fell roughly 0.2%, while safe-haven assets, including gold and other precious metals, moved toward new record highs.
As trade dynamics continue to unfold, traders and investors will need to keep a close eye on developments in the U.S.-Europe relationship — any further escalation could continue to roil global markets and impact portfolios worldwide.
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