Global markets moved lower as investors reacted to President Donald Trump’s renewed threat to impose tariffs tied to his push for U.S. control of Greenland, while fresh data pointed to a slowdown in China’s economy at the end of the year. European officials weighed possible countermeasures, gold surged to new highs and oil prices edged down as traders assessed the risk of escalating trade and geopolitical tensions.
U.S. futures and global equities slide
U.S. equity futures fell sharply on Monday after Trump warned that tariffs could be imposed on a number of European countries unless Washington is allowed to acquire Greenland.
By 03:05 ET, Dow futures were down 404 points, or 0.8%, S&P 500 futures had dropped 66 points, or 1.0%, and Nasdaq 100 futures were lower by 336 points, or 1.3%.
With U.S. cash markets closed for Martin Luther King Jr. Day, the immediate reaction played out in futures trading, while risk aversion spread across European and Asian equity markets.
In a research note, analysts at ING said Trump’s comments — coming after broad-based tariffs imposed last year — have pushed trade tensions into “an entirely new dimension — one driven less by economic logic and more by political motives.”
“The experience of the past 12 months has taught us not to overreact, as not all bold or dramatic announcements have ultimately been implemented. The uncomfortable truth, however, is that some of them have,” the analysts, including Carsten Brzeski and Bert Colijn, wrote.
Europe considers retaliation over Greenland tariffs
European leaders agreed over the weekend to intensify discussions on how to respond to Trump’s tariff threats, with media reports suggesting Brussels is considering tough retaliatory measures if the duties are enacted.
On Saturday, Trump said the U.S. would impose 10% tariffs on exports from eight European countries — Denmark, Sweden, France, Germany, the Netherlands, Finland, Norway and the United Kingdom — until the United States is able to purchase Greenland. He added that the rate would rise to 25% if the effort to acquire the vast, semi-autonomous Danish territory fails.
Trump has argued that securing Greenland is necessary for U.S. national security, a claim European governments have rejected, describing the approach as blackmail.
Ahead of an emergency EU summit scheduled for Thursday in Brussels, member states are expected to debate a range of responses. Options reportedly include a €93 billion package of tariffs on U.S. imports and possible use of the bloc’s “Anti-Coercion Tool,” which could restrict U.S. access to European investment, banking and services markets. Reuters, citing an EU source, said the tariff option currently has the broadest support.
The renewed tariff threat has also cast uncertainty over the future of the U.S.–EU trade agreement reached last year, with European officials indicating they cannot proceed while Washington pursues control of Greenland.
“At this point, the outcome of these new trade tensions is unclear, but what has long been evident is that there is no such thing as trade or tariff certainty anymore,” the ING analysts said.
Gold and silver hit fresh highs
Gold prices jumped to record levels during Asian trading as investors sought safe havens following Trump’s latest tariff warning.
Spot gold rose 1.6% to $4,667.33 an ounce by 02:26 ET (07:26 GMT), after touching an all-time high of $4,690.75 earlier in the session. U.S. gold futures also reached a new peak at $4,697.71 an ounce.
Silver outperformed, climbing more than 4% to a record $94.03 an ounce, supported by both safe-haven flows and its industrial demand profile.
Oil prices ease
Oil prices slipped, giving back part of last week’s gains as markets weighed the growing risk of a trade dispute linked to Greenland.
Brent crude futures fell 0.1% to $59.74 a barrel, while U.S. West Texas Intermediate crude slipped 0.1% to $55.95 a barrel.
Crude had rallied earlier last week on concerns that unrest in Iran could disrupt supplies from the Middle East, which accounts for a significant share of global production. Much of that risk premium faded after Trump said there would be no immediate U.S. military intervention, prompting a pullback before prices stabilised toward the end of the week.
China meets growth target despite slowdown
China’s economy expanded slightly more than expected in the fourth quarter of 2025, according to data released Monday, as stimulus measures and a recovery in consumption helped the country hit its annual growth goal.
Gross domestic product grew 4.5% year on year in the October–December period, matching forecasts but slowing from 4.8% in the previous quarter, marking the weakest pace in three years. On a quarter-on-quarter basis, growth came in at 1.2%, marginally above expectations of 1.1%.
The result brought full-year 2025 growth to 5%, in line with Beijing’s target. Policymakers are widely expected to maintain the same goal going forward, even as China grapples with renewed U.S. trade tensions, subdued consumer spending and a prolonged downturn in the property sector.
