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Announcement of Tariffs Shakes Global Markets
On January 19, President Trump revealed through Truth Social that Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would face tariffs of 10% starting February 1. The tariffs will rise to 25% by June 1, unless a deal is reached for the complete purchase of Greenland. European leaders quickly condemned the move, with French President Emmanuel Macron calling for the activation of the EU's "trade bazooka" in retaliation.
The US stock market also reacted negatively to the news, with S&P 500 and Nasdaq futures falling by 0.7% and 1%, respectively. Broader European stock futures fell by 1.1%, indicating a widespread risk-averse sentiment. Gold rose by 1.5%, reaching record highs, as investors sought safety in the precious metal. Meanwhile, the US dollar weakened by 0.3% against the Japanese yen.
On January 19, President Trump revealed through Truth Social that Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would face tariffs of 10% starting February 1. The tariffs will rise to 25% by June 1, unless a deal is reached for the complete purchase of Greenland. European leaders quickly condemned the move, with French President Emmanuel Macron calling for the activation of the EU's "trade bazooka" in retaliation.
The US stock market also reacted negatively to the news, with S&P 500 and Nasdaq futures falling by 0.7% and 1%, respectively. Broader European stock futures fell by 1.1%, indicating a widespread risk-averse sentiment. Gold rose by 1.5%, reaching record highs, as investors sought safety in the precious metal. Meanwhile, the US dollar weakened by 0.3% against the Japanese yen.
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