World markets jolted, euro softens, as Trump vows tariffs on Europe over Greenland

By Karin Strohecker, Dhara Ranasinghe and Samuel Indyk

LONDON, Jan 18 (Reuters) - Global markets are facing volatility aft President Donald Trump vowed to slap tariffs connected 8 European nations until the U.S. is allowed to bargain Greenland, quality that pushed the euro to a seven-week debased successful precocious Sunday trading.

Trump said helium would enforce ​an further 10% import tariff from February 1 connected goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, which volition emergence to 25% connected June ‌1 if nary woody is reached.

Major European Union states decried the tariff threats implicit Greenland arsenic blackmail connected Sunday. France projected responding with a scope of antecedently untested economical countermeasures.

As aboriginal commercialized kicked disconnected successful Asia-Pacific, the euro fell ‌0.2% to astir $1.1572, its lowest since November. Sterling besides dipped, portion the yen firmed against the dollar.

"Hopes that the tariff concern has calmed down for this twelvemonth person been dashed for present - and we find ourselves successful the aforesaid concern arsenic past spring," said Berenberg main economist Holger Schmieding.

Trump's sweeping "Liberation Day" tariffs successful April 2025 sent shockwaves done markets. Investors past mostly looked past U.S. commercialized threats successful the 2nd fractional of the year, viewing them arsenic sound and responding with alleviation arsenic Trump made deals with Britain, the EU and others.

While that lull mightiness beryllium over, marketplace moves connected Monday ⁠could beryllium dampened by the acquisition that capitalist sentiment had been ‌more resilient than expected successful 2025 and planetary economical maturation stayed connected track.

U.S. markets are closed connected Monday for Martin Luther King Jr. Day, which means a delayed absorption connected Wall Street.

The implications for the dollar were little clear. It remains a harmless haven, but could besides consciousness the interaction ‍of Washington being astatine the centre of geopolitical ruptures, arsenic it did past April.

Bitcoin, a liquid proxy for hazard that is unfastened to commercialized astatine the weekend, was steady, past trading astatine $95,330.

Capital Economics said countries astir exposed to accrued U.S. tariffs were the UK and Germany, estimating that a 10% tariff could trim GDP successful those economies by astir 0.1%, portion a 25% tariff could sound 0.2–0.3% disconnected output.

European stocks are ​near grounds highs. Germany's DAX and London's FTSE scale are up much than 3% this month, outperforming the S&P 500, which is up 1.3%.

European defence shares volition apt proceed to payment ‌from geopolitical tensions. Defence stocks person jumped astir 15% this month, arsenic the U.S. seizure of Venezuela's Nicolas Maduro fuelled concerns astir Greenland.