World markets face fresh jolt as Trump vows tariffs on Europe over Greenland

Global markets face a fresh bout of volatility this week after President Donald Trump vowed to slap tariffs on eight European nations until the US is allowed to buy Greenland. Trump said he would impose an additional 10 percent import tariffs from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, which will rise to 25 percent on June 1 if no deal is reached. “Hopes that the tariff situation has calmed down for this year have been dashed for now - and we find ourselves in the same situation as last spring,” said Berenberg chief economist Holger Schmieding. Sweeping “Liberation Day” tariffs in April 2025 sent shockwaves through financial markets. Investors then largely looked past Trump trade threats in the second half of the year, viewing them as noise and responding with relief as Trump made deals with the likes of Britain and the European Union.