US President Donald Trump has escalated tensions by threatening additional tariffs on eight European countries in a bid to claim ownership of Greenland. This move sent shockwaves through global markets, with stock prices plummeting and gold and silver hitting record highs.
European stocks slumped, with Germany's DAX, France's CAC, and Italy's FTSE MIB all falling over 1% as investors fled riskier assets. The pan-European STOXX 600 also plummeted, while the UK's FTSE 100 fell 0.4%. European carmakers, such as Volkswagen, BMW, and Mercedes-Benz, were particularly hard hit.
Gold prices surged to a new high of $4,671 per ounce, up 1.6% from previous levels, as investors sought safe-haven assets amid the uncertainty. Silver also reached a record high of $94.08 an ounce before easing slightly.
Analysts say Trump's tariff threat has created a perfect storm for gold prices to rise. Mohit Kumar, chief economist at Jefferies, noted that markets have become accustomed to Trump's actions and are less likely to be deterred by his latest threat.
However, not everyone is convinced that the deadline will be postponed. Carsten Brzeski, global head of macro analysis at ING, warned that businesses in the EU could exploit a tariff loophole, which would undermine the effectiveness of the tariffs.
The US dollar also fell against a basket of currencies as investors became increasingly risk-averse. In contrast, European stocks remain heavily weighted towards tech firms, which were hit by Trump's latest move.
EU ambassadors are now preparing retaliatory measures in case Trump follows through on his tariff threat. Analysts predict that these measures could have significant long-term consequences for trade between the EU and the US.
As tensions continue to escalate, markets remain volatile. Kathleen Brooks, research director at XTB, warned that a benign market environment may be short-lived if Trump increases pressure on Europe over Greenland.
European stocks slumped, with Germany's DAX, France's CAC, and Italy's FTSE MIB all falling over 1% as investors fled riskier assets. The pan-European STOXX 600 also plummeted, while the UK's FTSE 100 fell 0.4%. European carmakers, such as Volkswagen, BMW, and Mercedes-Benz, were particularly hard hit.
Gold prices surged to a new high of $4,671 per ounce, up 1.6% from previous levels, as investors sought safe-haven assets amid the uncertainty. Silver also reached a record high of $94.08 an ounce before easing slightly.
Analysts say Trump's tariff threat has created a perfect storm for gold prices to rise. Mohit Kumar, chief economist at Jefferies, noted that markets have become accustomed to Trump's actions and are less likely to be deterred by his latest threat.
However, not everyone is convinced that the deadline will be postponed. Carsten Brzeski, global head of macro analysis at ING, warned that businesses in the EU could exploit a tariff loophole, which would undermine the effectiveness of the tariffs.
The US dollar also fell against a basket of currencies as investors became increasingly risk-averse. In contrast, European stocks remain heavily weighted towards tech firms, which were hit by Trump's latest move.
EU ambassadors are now preparing retaliatory measures in case Trump follows through on his tariff threat. Analysts predict that these measures could have significant long-term consequences for trade between the EU and the US.
As tensions continue to escalate, markets remain volatile. Kathleen Brooks, research director at XTB, warned that a benign market environment may be short-lived if Trump increases pressure on Europe over Greenland.
he's gonna scare everyone with this tariff thing and then just make a u-turn? pls no, can't we all just get along about greenland already? 
seriously though, it's not even like the eu can just sit back and do nothing. they need to stand up for themselves or else who knows what'll happen next? 
i mean, gold prices are already through the roof, but if trump really goes through with this, it could get a lot worse. like, we're all in this together, right? 
let's just try to keep things chill and avoid a trade war 
he thinks eu's gonna fold just 'cause he's got his tariffs threatened newsflash, trump: we're not afraid of your tantrums 
anyway, glad to see gold & silver prices skyrocketing - who needs a stable economy when you can have shiny metals? 
but seriously, how's this supposed to help him claim ownership of greenland? 
either way, hope eu ambassadors can come up with some solid retaliatory measures 
Carsten Brzeski is right, businesses in the EU could totally exploit a tariff loophole and screw over all those investors who bought gold and silver just to hedge against the market crash. And don't even get me started on the EU ambassadors preparing retaliatory measures... it's like a game of economic chicken! 
Trump needs to chill out already! 
seriously though, this whole thing with greenland is crazy talk! can't believe he thinks he can just muscle in on eu's territory like that... and now europe is getting ready to hit back? it's gonna be a trade war for the ages 
this all sounds super fishy to me... like who gives a country ownership of another? and what's with the gold prices spiking? is it just because we're all supposed to believe trump's bluff? 
i need more info on this before i buy into the 'perfect storm' narrative... or is it just a perfect excuse for trumps next move? 
, i guess people just wanna hide their money away because they're so scared. but honestly who knows what's gonna happen next? this is all so unpredictable 
. and omg the EU is already planning retaliatory measures? that sounds so serious 
. can't we just chill for once?
The tariffs are not going to hurt anyone but the EU, who's been playing hardball with us for years 
Trump's just trying to make America great again 
And if that means taking some heat from the EU, so be it 
come on trump... can't u just chill for once?! 
escalating tensions over greenland is just a big distraction from the issues u r supposed to be focusing on, like jobs and economy in america. meanwhile, europeans are suffering and it's not cool that ur doing this as a way to grab attention. 
let's get back to the real issues at hand, shall we? 
? In all seriousness, though, the impact on European markets and businesses could be huge. Volkswagen, BMW, and Mercedes-Benz are already taking a hit, so imagine how that'll affect workers and consumers in those countries. 
It's just not worth the risk. And now we're seeing gold prices skyrocket because people are freaking out... it's like the market is just playing a game of chicken with Trump 
.
The whole world knows what Greenland is and its value far exceeds whatever tariffs he's proposing 
Not me, that's for sure 
. These tariffs and threats are gonna make things worse for businesses and regular folks on both sides of the Atlantic 
. These markets are volatile, but it's not just about Trump's threats or EU ambassadors' retaliatory measures – it's about how we're all gonna be affected by the ripple effects of this trade war 
.
. The impact on stocks is crazy, especially for European carmakers 
. And gold and silver prices are going through the roof 
! It's like everyone is just trying to stay safe from Trump's tweets 
.
i'm reading the comments everywhere saying it's just another one of his crazy schemes and we should just ignore him. but like, how can we just sit back and watch our economy tank? 
anyway, gold prices are going up so that's something, right? 
Is this really worth all the drama? Can't we just leave it alone? 