US Stocks Tumble on Trump’s Tariff Threat Over Greenland
US stock markets plunged on Tuesday after former President Donald Trump threatened to impose 25% tariffs on eight European nations unless they back US claims to Greenland. The Dow Jones fell 1.5%, while the S&P 500 and Nasdaq dropped over 2%.
Key Takeaways
- Trump threatened 25% tariffs on eight European countries over Greenland.
- Major US indices fell sharply: Dow -1.5%, S&P 500 & Nasdaq -2%+.
- Markets fear a major escalation in US-Europe trade tensions.
Market Impact and European Response
The tariff threat targeted Germany, France, and the UK among others, sending shockwaves through global financial markets. European stocks also fell sharply in response.
Analysts warned the move marks a significant escalation in transatlantic trade tensions, with potential repercussions for the global economy.
“This is a very dangerous game that Trump is playing,” said one analyst. “It could lead to a full-blown trade war.”
The White House did not immediately respond to requests for comment on the market reaction.
