Young people with signs reading “Greenland is not for sale!” participate in a demonstration that brought together nearly a third of the city’s population to protest the US president’s plans to take Greenland, on January 17, 2026 in Nuuk, Greenland, near the US Consulate in Greenland.
Alessandro Rampazzo | Afp | Getty Images
LONDON — European stocks were lower on Monday as traders reacted to US President Donald’s decision Trump’s threat to raise tariffs on European countries if they oppose his offer to buy Greenland.
The pan-European Stoxx 600 was trading down 1.1% shortly before 2:00 p.m. in London (9:00 a.m. ET), with all but one sector – telecommunications, up 0.5% – in negative territory.
The market plunge comes after Trump announced on Saturday that eight European allies would face increasing tariffsfrom 10% on February 1 and up to 25% on June 1, if an agreement is not reached allowing Washington to “buy” Greenland, a semi-autonomous territory that is part of Denmark.
Goods from eight NATO members sent to the United States will face increasing tariffs “until an agreement is reached for the complete and total purchase of Greenland,” Trump said on his social media platform Truth Social on Saturday.
The proposed tariffs would target Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, Trump said. European leaders said the prices were “unacceptable” and pledged to support Denmark.
European automakers and the luxury goods sector have been hit hard by investor reaction to the tariff proposals. The Stoxx Europe 600 Automobiles & Parts index was down 2.1%. Volkswagen fell by around 2.2%, while Porsche fell by 3.4% and BMW lost almost 3.4%.
Among the luxury names of the continent, LVMH fell by almost 4%, Dry slipped 3%, Hermes fell by 2.6% and Moncler was down 2.5%. Overall, the Stoxx Europe Luxury 10 was last seen down 3%.
On the other hand, European defense stocks have recovered. Rheinmetallthe continent’s largest defense company, rose 2.5%, like its German counterpart Color advanced nearly 1.2%, with the French technology and aerospace giant Thales adding 2%.
Elsewhere, ASM International fell 0.6%, reversing its morning gains, after the Dutch computer chip maker reported stronger-than-expected preliminary bookings of around 800 million euros ($930 million) for the fourth quarter, boosted by a rebound in Chinese orders and above forecasts of 669 million euros. Preliminary revenues came in at €698 million, beating LSEG poll estimates.
Actions of ASMLmeanwhile, fell 3.6%. The fall comes after the Dutch semiconductor equipment maker hit a record last week.
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WE gold futures hit a 52-week high on Monday, rising 1.7% to $4,673.30 an ounce, while spot the gold prices were last seen at $4,665.29, up 1.5%.
Markets will also be closely watching the start of the World Economic Forum this week in Davos, Switzerland. Trump is scheduled to address the Forum on Wednesday.
There are no major results this week, although on the data side, Eurozone inflation data is due.