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Global Markets Fall as US Announces Tariffs on European Nations

Markets

Business Honor
19 January, 2026

US Tariffs on Eight European Nations Cause Market Drops, Lift Gold, Heighten Trade and Geopolitical Fears.

Global stock markets are expected to begin the week on a down note after the US administration imposed new tariffs on eight European countries. President Donald Trump plans to impose 10% tariffs on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting February 1st, increasing to 25% on June 1st. The measure aims to put pressure on these nations to back their interest in acquiring Greenland.

According to IG's weekend markets, London's FTSE 100 could decline 0.9% on Monday, while the Dow Jones Industrial Average could fall 0.5% when Wall Street reopens on Tuesday. Experts say that the tariff threat has raised geopolitical tensions, raising fears about NATO's stability and risking last year's economic agreements with Europe. Investors are turning to secure assets, with gold up 0.6% to $4,625 per ounce, close to last week's high of $4,642, and silver up 0.5% to $90.41 per ounce.

European politicians, especially UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, have opposed the US plan, considering it as a risk to transatlantic relations. Business groups also highlighted concerns: Germany's engineering association asked the EU to look for remedies, while business organizations in Germany and the UK warned of "enormous" costs and increased pressure on exporters.

According to market strategists, businesses that are currently facing tariffs may have less room to absorb more charges, resulting in greater costs being passed on to consumers and having a broader economic impact. Any development or resolution might have an important effect on worldwide trade and markets. Experts advise prudence in the medium term, expecting security investments to remain in demand while markets may see continued volatility in the next months, stressing the continual interaction between politics and economic stability.