Global Markets Slide As Gold And Silver Surge After Trump’s New Tariff Warning

European stock markets declined on Monday, while gold and silver climbed to record levels, following fresh tariff threats from US President Donald Trump tied to his escalating push to acquire Greenland. Major European indices including Germany’s DAX, France’s CAC, and Italy’s FTSE MIB all fell by more than 1%, alongside losses in the pan-European STOXX 600. In the UK, the FTSE 100 dipped 0.4% to 10,194. At the same time, investors sought safety in precious metals, driving gold up 1.6% to $4,671 an ounce after hitting an all-time high of $4,689, while silver briefly surged to a record $94.08 an ounce.

Automakers were among the hardest hit, with shares of Volkswagen, BMW, Mercedes-Benz, and Stellantis sliding between 2% and 4%. US tech stocks listed in Europe also fell, despite US markets being closed for Martin Luther King Jr Day. The dollar weakened slightly, while analysts warned that renewed tariff uncertainty could disrupt investment and trade flows. “For businesses, the developments over the weekend mean another period of uncertainty around investments in and exports to the US,” said ING’s global head of macro analysis, Carsten Brzeski.

Trump’s comments over the weekend marked a sharp escalation, as he threatened tariffs of up to 25% on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland unless the US is allowed to purchase Greenland. In a Truth Social post, he said a 10% tariff would begin on 1 February “on any and all goods sent to the United States of America,” rising to 25% by 1 June if no agreement is reached. Economists say markets have grown used to tariff threats being softened after negotiations, but warned the Greenland issue could prove harder to resolve.

Analysts also cautioned that new tariffs could dent European growth, with the UK potentially facing a sharper economic impact. EU officials are now preparing possible retaliatory measures, while geopolitical tensions continue to fuel demand for safe-haven assets. “With Trump throwing tariffs into the mix, it is clear that his threat to Greenland is real,” said StoneX analyst Matt Simpson, noting that the uncertainty has given gold another strong push upward.