European shares mostly fell and U.S. stock futures sank Monday after President Donald Trump threatened a 10% extra tariff on imports from eight European countries over their opposition to the United States taking control of Greenland, according to the Associated Press.
The AP reported that Germany’s DAX lost 1.3% to close at 24,960.33, while Paris’s CAC 40 fell 1.9% to 8,101.96. Britain’s FTSE 100 declined 0.4% to 10,190.26.
Among U.S. stock futures, the S&P 500 was down 1% as of 11:48 a.m. Eastern Time, the Dow Jones Industrial Average was down 0.8% and the Nasdaq composite was down 1.2%. U.S. markets were closed Monday in observance of Martin Luther King Jr. Day.
Trump said Saturday he would charge a 10% import tax starting in February on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland because of their opposition to American control of Greenland. European countries targeted by the threat blasted the plan, saying it “undermine[s] transatlantic relations and risk a dangerous downward spiral.” The AP described the joint statement as the most forceful rebuke from European allies since Trump returned to the White House almost a year ago.
In a commentary carried by the AP, Stephen Innes of SPI Asset Management said Trump’s moves are testing the strategic alignment and institutional trust underlying support from Europe, the largest trading partner and provider of financing to the United States. Innes said, “In a world where geopolitical cohesion within the Western alliance is no longer taken for granted, the willingness to recycle capital indefinitely into U.S. assets becomes less automatic. This is not a short-term liquidation story. It is a slow rebalancing story, and those are far more consequential.”
In Asia, shares were mixed after China reported its economy expanded at a 5% annual pace in 2025, though it slowed in the last quarter. The AP said strong exports helped offset relatively weak domestic demand despite Trump’s higher tariffs on imports from China. Hong Kong’s Hang Seng index lost 1.1% to 26,563.90, while the Shanghai Composite index gained 0.3% to 4,114.00. In Japan, the Nikkei 225 declined 0.7% to 53,583.57. Japanese Prime Minister Sanae Takaichi was due to hold a news conference later Monday as she prepares to dissolve the parliament for a snap election next month.
Elsewhere in Asia, South Korea’s Kospi jumped 1.3% to 4,904.66, moving further into record territory on strong gains for tech-related companies. The AP reported SK Hynix climbed 1.1%. Taiwan’s Taiex added 0.7%, while India’s Sensex fell 0.6%.
The AP said U.S. investors were also weighing a still-developing earnings calendar. On Friday, the S&P 500 fell 0.1%, the Dow industrials lost 0.2% and the Nasdaq composite shed 0.1%, with weekly losses across the major indexes while smaller-company stocks were comparatively steadier; the Russell 2000 eked out a 0.1% gain. The AP reported that technology stocks were the strongest forces behind the market’s moves throughout most of the day.
The AP said investors would look for signals from corporate results about how consumers are spending and how businesses are faring with persisting inflation and higher tariffs. It reported that earnings updates for the technology sector are being scrutinized by investors trying to determine whether high stock prices fueled by the craze around artificial intelligence are justified. This week will bring a broader mix of earnings from airlines, industrial companies and technology companies, with United Airlines, 3M and Intel scheduled to release quarterly results.
The AP also pointed to the next inflation update for the Federal Reserve: the government’s release of the personal consumption expenditures price index, or PCE, which the Fed uses as its preferred measure for inflation. It said the Fed’s next policy meeting is in two weeks, when markets were expected to keep the current benchmark interest rate as the central bank balances a slowing jobs market with stubbornly high inflation that remains above its 2% goal.
In other Monday pricing, the AP reported U.S. benchmark crude oil rose 12 cents to $59.58 per barrel and Brent added 5 cents to $64.17 per barrel, with price moves described as settling down after volatility amid widespread protests in Iran against that country’s leadership. Gold resumed its upward climb, gaining 1.8%, and silver jumped 6.2%. The AP said the U.S. dollar rose to 158.10 Japanese yen from 157.93 yen, and the euro rose to $1.1643 from $1.1581.