Gold Surges, Stock Futures Slide on Greenland Tariff Threat

Key Takeaways

• The U.S. plans sweeping tariffs on eight European countries tied to the Greenland dispute.

• Markets reacted with a flight to safety, boosting precious metals and pressuring equities.

• The EU is preparing potential retaliatory measures to counter U.S. actions.

• Legal uncertainty surrounds the authority Trump may invoke to impose the tariffs.

• Political and military tensions are rising across Europe and the Arctic region.

U.S. President Donald Trump announced that beginning February 1, 2026, the United States will impose an additional 10% tariff on all goods exported to the U.S. from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. Starting June 1, 2026, the tariff rate will be raised to 25%. The stated reason for the move is these countries’ opposition to U.S. control over Greenland, a step that further escalates the dispute over the island’s future status.

At Monday’s market open, gold and silver prices surged, while U.S. equity futures fell sharply across the board. U.S. stock markets were closed for the Martin Luther King Jr. Day holiday.

Trump said the tariffs would remain in place until an agreement is reached on the “complete and total purchase of Greenland.” The tariff threat is widely seen as a significant and potentially dangerous escalation in Trump’s confrontation with NATO allies. The European Union has already begun preparing countermeasures.

According to FT, multiple EU countries are considering imposing tariffs on up to $108 billion worth of U.S. exports to Europe, or restricting U.S. companies’ access to EU markets, in response to Trump’s tariffs on the eight European nations aimed at securing control of Greenland.

The report said the tariff list was drafted last year but its implementation was delayed to avoid a full-scale transatlantic trade war. The suspension expires on February 6. On the 18th, permanent representatives of the EU’s 27 member states met in Brussels to discuss whether to reactivate the list and whether to deploy the bloc’s anti-coercion instrument.

Officials involved in preparing the countermeasures said the goal is to provide European leaders with leverage in upcoming talks with Trump during the World Economic Forum annual meeting in Davos, Switzerland.

It remains unclear under which U.S. legal authority Trump would implement the tariffs. He is most likely to invoke emergency economic powers, which are currently under review by the U.S. Supreme Court.

Greenland is located northeast of North America and is an autonomous territory of Denmark. Trump has repeatedly insisted that the United States should control Greenland, stating earlier this week that it would be “unacceptable” for the island not to come under U.S. control.

Meanwhile, although some European countries agreed last year to accept a proposed 15% tariff in order to preserve economic and security ties with the U.S., resistance is growing against Trump’s ambition to annex Greenland.

European leaders have stressed that Greenland’s future can only be decided by Denmark and the people of Greenland. Denmark announced this week that it would strengthen its military presence on the island in coordination with allies. At Denmark’s request, several European countries have deployed small numbers of military personnel to Greenland.

On Saturday, protests broke out in Denmark and Greenland opposing Trump’s demands and calling for the region to determine its own future. Earlier that day, a planned demonstration began in Nuuk, Greenland’s capital. Greenland’s Prime Minister Jens-Frederik Nielsen joined the march and said in a speech, “Our future is decided by ourselves.” Several political figures, including former prime ministers Kim Kielsen and Múte Bourup Egede, also attended.

U.S. Democratic Senator Chris Coons said in Copenhagen that rhetoric surrounding Greenland has sparked concern across the Kingdom of Denmark, adding that his visit aimed to ease tensions. “I hope the Danish people do not lose trust in the American people and will respect the history we share,” he said.

Major General Søren Andersen, commander of Denmark’s Joint Arctic Command, said Denmark does not believe the U.S. military would attack Greenland or any other NATO ally. He noted that European forces have recently been deployed to Nuuk for Arctic defense training.

He added that the deployments were not intended as a political signal to the Trump administration, even though the White House has not completely ruled out the use of force to seize the territory.

Norwegian Foreign Minister Espen Barth Eide said there is broad consensus within NATO on strengthening security in the Arctic, including Greenland. “We believe it is inappropriate to bring tariff issues into this discussion,” he said.