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Donald Trump said he will impose 10% tariffs on eight countries including the UK.
22:52, Sun, Jan 18, 2026 Updated: 22:57, Sun, Jan 18, 2026
Trump revealed that he intends to levy a 10% tariff on goods from various European countries (Image: Getty)
Global markets are on edge and bracing for turbulence after US President Donald Trump announced plans to impose steep tariffs on several European nations over Greenland, sparking widespread alarm among investors and political leaders.
Trump revealed on Saturday that he intends to levy a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting February 1. The duties would jump to 25% on June 1 if the countries do not support his bid to gain control over Greenland, an autonomous territory of the Kingdom of Denmark. Financial markets are reacting with caution. IG’s weekend trading data suggests London’s FTSE 100 could fall nearly 1% when trading resumes Monday, while Wall Street is projected to open lower on Tuesday.
Keir Starmer said the tariffs as “completely wrong.” (Image: Getty)
Safe-haven assets such as gold and silver are rising, with gold trading at $4,625 an ounce—approaching last week’s record high of $4,642, The Guardian reported.
As markets reacted to the latest tariff announcements, early trading in the Asia-Pacific region showed immediate effects on major currencies. The euro fell 0.2% to around $1.1572, its lowest since November, while sterling also dipped, Reuters reported. Meanwhile, the Japanese yen strengthened against the dollar,
Tony Sycamore, a market analyst at IG, said: "This latest flashpoint has heightened concerns over a potential unravelling of NATO alliances and the disruption of last year’s trade agreements with several European nations, driving risk-off sentiment in stocks and boosting safe-haven demand for gold and silver."
Holger Schmieding, chief economist at Berenberg, London, also said: "For Europe, this is a bad geopolitical headache and a moderately significant economic problem. But it could also backfire for Trump, who faces resistance from senior Republicans in the US.
"Logic still points to an outcome that respects Greenland's right to self-determination, strengthens security in the Arctic for NATO as a whole, and largely avoids economic damage for Europe and the U.S."
European officials issued a rare joint statement on Sunday condemning Trump’s tariff threat, calling it a danger to transatlantic relations.
The statement reads: "As members of NATO, we are committed to strengthening Arctic security as a shared transatlantic interest. The pre-coordinated Danish exercise Arctic Endurance, conducted with Allies, responds to this necessity. It poses no threat to anyone.
"We stand in full solidarity with the Kingdom of Denmark and the people of Greenland. Building on the process begun last week, we stand ready to engage in a dialogue based on the principles of sovereignty and territorial integrity that we stand firmly behind.
"Tariff threats undermine transatlantic relations and risk a dangerous downward spiral. We will continue to stand united and coordinated in our response. We are committed to upholding our sovereignty."
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Prime Minister Sir Keir Starmer also said on Saturday: "We have also made clear that Arctic security matters for the whole of Nato and allies should all do more together to address the threat from Russia across different parts of the Arctic.
"Applying tariffs on allies for pursuing the collective security of Nato allies is completely wrong. We will, of course, be pursuing this directly with the US administration."
English (US) · 