Diplomats within the European Union report the bloc is organizing retaliatory actions to counter potential new tariffs threatened by President Donald Trump. These tariffs target various European allies amidst an ongoing dispute related to the United States' intentions to establish control over Greenland, a North Atlantic territory currently under Danish sovereignty.
According to a recent report, EU ambassadors reached a broad consensus on Sunday to intensify diplomatic efforts aimed at dissuading the U.S. administration from implementing these tariffs. Concurrently, they are developing contingency plans for countermeasures should the tariffs proceed as threatened.
President Trump has indicated plans to impose escalating tariffs effective February 1 against countries including Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom, and Norway. These actions are framed as a response to these nations' objections to U.S. moves concerning Greenland's status.
The EU is contemplating imposing tariffs on approximately 43 billion (equivalent to $107.7 billion) worth of imports from the U.S., with a potential start date of February 6 following a six-month suspension. Beyond traditional tariff measures, member states are examining the implementation of the Anti-Coercion Instrument, a mechanism not previously utilized. This instrument could restrict access to public tenders, investments, banking operations, or trade in services where the U.S. enjoys a trade surplus, notably in digital services.
Ant nio Costa, President of the European Council, publicly endorsed Denmark and Greenland in a message posted on the social platform X, stating, "the EU stands in full solidarity with Denmark and the people of Greenland." Costa emphasized that resorting to tariffs risks undermining the transatlantic partnership and could precipitate a dangerous downward spiral in relations.
Separately, German Christian Democrat legislator Juergen Hardt proposed a highly unconventional measure as a last-resort option: a boycott by the European bloc of the upcoming FIFA World Cup scheduled in the U.S. later this year. This step would aim to pressure the Trump administration to reconsider its approach toward Greenland.
Earlier statements from Danish Prime Minister Mette Frederiksen underscored Europe's firm stance, declaring, "Europe will not be blackmailed," as she called on the United States to cease threatening a historically close ally.
The unfolding political tensions coincide with market movements reflecting investor apprehension. On Sunday evening, U.S. stock futures registered notable declines amid the escalating geopolitical and trade uncertainties. Specifically, the S&P 500 Futures dropped 0.82%, equating to a loss of 57.50 points at a level of 6,918.75. Nasdaq Futures decreased by 0.11% or 284 points, holding at 25,404.25, while Dow Futures fell 0.73%, or 354 points, trading at 49,187.00.
This market activity occurs ahead of the Federal holiday on Monday commemorating Martin Luther King Day, during which equity and bond markets in the U.S. will be closed. Nonetheless, several futures markets, including those on the CME Globex platform, will remain open for trading.
Amid these dynamics, precious metals sectors have experienced sharp positive movements. Silver prices surged to a fresh all-time high of $94 per ounce before retreating slightly, currently pricing at $93.411 per ounce after appreciating 3.71% over the trading day. Gold similarly reached unprecedented heights, peaking at $4,675 an ounce and currently trading at $4,666.41, reflecting a 1.51% increase.
The pronounced interest in gold and silver likely signals a flight to perceived safe-haven assets in response to the geopolitical uncertainty surrounding the U.S.-EU tensions.