Rising transatlantic tensions are expected to ripple into U.S. financial markets after U.S. President Donald Trump announced plans to impose new tariffs on Europe, drawing sharp backlash from the European Union.
On Saturday, President Trump said the United States would levy an additional 10% tariff on goods from eight European countries, accusing them of obstructing Washington’s efforts to acquire Greenland.
The tariffs are set to take effect on February 1, with the rate scheduled to rise to 25% on June 1 if no progress is made.
The countries targeted include Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland.
These nations already face tariffs ranging from 10% to 15%, meaning the new measures would significantly raise their overall trade burden.
EU officials reacted strongly. The eight countries warned that continued tariff threats would undermine transatlantic relations and called for an emergency meeting of EU member states to coordinate a response.
Brussels is widely expected to threaten to suspend ongoing U.S.–EU trade negotiations.
Washington, however, has dismissed the criticism. U.S. Treasury Secretary Scott Bessent defended Trump’s stance in a CNBC interview on Sunday, outlining what he described as broader strategic reasons behind the administration’s Greenland policy.
Asked whether the tariffs were merely a negotiating tactic, Bessent said Trump was unlikely to reverse course, adding that the president believes U.S. security cannot be adequately strengthened unless Greenland becomes part of the United States.
With the United States and Europe, long regarded as the core of the Western alliance, now openly clashing over Greenland, geopolitical uncertainty is mounting. Market analysts say the escalating dispute could weigh on U.S. equities, as investors assess the risk of prolonged trade friction and diplomatic fallout.