Global markets moved lower as investors reacted to President Donald Trump’s renewed tariff threats tied to his push to acquire Greenland, while fresh data showed China’s economy losing momentum in the final quarter of the year. European officials discussed possible countermeasures, gold surged to new record highs and oil prices eased as traders weighed the risk of escalating trade tensions and geopolitical fallout.
U.S. futures and global equities retreat
U.S. equity futures were sharply lower on Monday as markets digested Trump’s warning that tariffs could be imposed on several European countries unless Washington is allowed to buy Greenland.
By 03:05 ET, Dow futures were down 404 points, or 0.8%, S&P 500 futures had fallen 66 points, or 1.0%, and Nasdaq 100 futures were lower by 336 points, or 1.3%.
With Wall Street closed for Martin Luther King Jr. Day, the immediate market response to Trump’s comments was concentrated in futures trading, while risk-off sentiment spread across European and Asian equities.
In a note, ING analysts said Trump’s remarks — following the broad 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 weighs response to Greenland-linked tariffs
European leaders agreed on Sunday to intensify discussions on how to respond to Trump’s tariff threats, with media reports indicating that Brussels is even considering tough retaliatory steps should the measures be 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 tariff rate would rise to 25% if the U.S. fails to secure control of the vast semi-autonomous Danish territory.
Trump has framed the proposed acquisition as a national security necessity, a position European governments have rejected, describing the approach as blackmail.
Ahead of an emergency EU summit scheduled for Thursday in Brussels, member states are reportedly preparing to debate a range of countermeasures. These include a potential €93 billion package of tariffs on U.S. imports and the 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, reported that the tariff option currently has broader backing.
The renewed tariff threat has also cast doubt over the future of the U.S.–EU trade agreement reached last year, with EU officials indicating they cannot proceed with ratification 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 records
Gold prices jumped to all-time highs during Asian trading as demand for safe-haven assets surged following Trump’s latest tariff warning.
Spot gold climbed 1.6% to $4,667.33 an ounce by 02:26 ET (07:26 GMT), after touching a record $4,690.75 earlier in the session. U.S. gold futures also reached a new peak at $4,697.71 an ounce.
Silver rallied even more sharply, gaining over 4% to hit a record high of $94.03 an ounce, supported both by safe-haven flows and its role as an industrial metal.
Oil prices ease back
Oil prices slipped, giving up part of last week’s gains as markets assessed the risk of a trade conflict linked to Greenland.
Brent crude futures fell 0.1% to $59.74 a barrel, while U.S. West Texas Intermediate crude was down 0.1% at $55.95 a barrel.
Crude had rallied earlier last week amid concerns that unrest in Iran could disrupt Middle Eastern oil supplies, a region that 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, triggering a pullback before prices stabilised toward the end of the week.
China meets growth goal 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 improving consumption helped the country meet its full-year growth target.
Gross domestic product rose 4.5% year on year in the October–December period, matching expectations but slowing from 4.8% in the third quarter, marking the weakest pace in three years. On a quarter-on-quarter basis, GDP grew 1.2%, marginally above forecasts of 1.1%.
The result brought China’s full-year 2025 growth to 5%, in line with Beijing’s official target. Policymakers are expected to set the same growth objective again, even as the country faces renewed U.S. trade tensions, subdued consumer demand and a prolonged property-sector downturn.