Global Markets Sink as Trump Proposes 10% Greenland Tariffs in 2026
Global markets are in turmoil as President Trump threatens 10% tariffs on 8 European nations over Greenland. Read about the fallout in Nikkei, DAX, and S&P 500 futures.
A 10% tariff wall is rising. World shares took a heavy hit on Tuesday, Jan. 20, 2026, after U.S. President Donald Trump threatened to slap extra import taxes on eight European nations. The provocation stems from their opposition to American control of Greenland, sparking fears of a renewed transatlantic trade war.
Impact of Trump Greenland Tariffs 2026 on Global Markets
According to the Associated Press, the targeted countries include Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. The shockwaves were felt immediately; S&P 500 futures sank 1.3% while the Dow Jones Industrial Average dropped 1.2%. European indices also bled, with Germany's DAX losing 1.3% and Paris's CAC 40 tumbling 1.9%.
Japan Snap Election and Surging Bond Yields
In Asia, the turmoil wasn't just about trade. Japanese Prime Minister Sanae Takaichi called for a snap election on Feb. 8, aiming to capitalize on her popularity. However, her proposal to suspend the food tax and increase government spending has alarmed fiscal hawks. The yield on Japan's 40-year government bond surged to a record 4%, a level not seen in decades. Tokyo's Nikkei 225 benchmark fell 1.1% to 52,991.10.
The contagion spread across the region as the Kospi in South Korea dropped 0.4% and Hong Kong's Hang Seng edged down 0.3%. Investors are now looking ahead to the Federal Reserve's next move and upcoming inflation data to see if the central bank can navigate a slowing job market while keeping prices stable.
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On Jan 19, 2026, President Trump threatened 10% tariffs on 8 European nations over the Greenland dispute. US futures and Nikkei fall as transatlantic tensions reach a new peak.
Europe shifts to a hardline stance as Trump doubles down on his bid for Greenland. The EU considers €93 billion in retaliatory tariffs as the transatlantic alliance faces a 2026 breaking point.
Japan's new Centrist Reform Alliance unveiled its 2026 pledges, including a 0% food tax and a pragmatic SDF stance, ahead of the February snap election against PM Takaichi.
Italian PM Meloni slams Trump's Greenland tariffs as a mistake while protests erupt in Nuuk. Explore the 2026 geopolitical shifts from the Arctic to the Syrian ceasefire.
On Jan 19, 2026, President Trump threatened 10% tariffs on 8 European nations over the Greenland dispute. US futures and Nikkei fall as transatlantic tensions reach a new peak.