European Shares Slide as Trump Threatens Tariffs Over Greenland Purchase Plan

London, Jan. 19, 2026 — European equity markets declined on Monday after U.S. President Donald Trump warned of higher import duties on several NATO allies unless they agree to sell Greenland to Washington.

The pan-European Stoxx 600 shed 1.23 percent by the close, with losses spreading across most industry groups. Investors pulled back following Trump’s weekend announcement that goods from eight European countries would face incremental tariffs starting next month.

The proposed tariff timeline

Under the plan outlined on Trump’s social media account Saturday, shipments from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would be hit with a 10 percent levy on Feb. 1. Duties would climb to 25 percent on June 1 if no agreement is reached for what the president called the “complete and total purchase” of Greenland, an autonomous Danish territory.

European officials swiftly labeled the measure “unacceptable” and signaled unified support for Denmark, which has repeatedly said Greenland is not for sale. The threatened duties would apply broadly to industrial and consumer products exported to the United States, amplifying concern among companies already navigating slowing global demand and existing trade frictions.

Autos and luxury lead the retreat

Sectors with significant U.S. exposure bore the brunt of Monday’s sell-off. The Stoxx Europe 600 Automobiles & Parts Index lost 2.22 percent. Volkswagen fell 2.82 percent, Porsche retreated 2.68 percent and BMW slid 3.74 percent. Luxury goods groups fared similarly: LVMH declined 4.69 percent, Hermès dropped 4.45 percent, Kering slipped 3.9 percent and Moncler closed 1.98 percent lower. The Stoxx Europe Luxury 10 index ended the session down 3.15 percent.

Market participants said the prospect of fresh tariffs rekindled memories of the 2018-2019 trade dispute between Washington and Brussels, when auto duties were frequently threatened yet ultimately avoided. Many high-end European brands derive a sizable portion of revenue from U.S. consumers, making them sensitive to any escalation in trans-Atlantic trade tensions.

Defense names edge higher

A handful of defense contractors bucked the broader weakness. German group Rheinmetall added 1.08 percent, while France-based Thales gained 0.73 percent. Analysts attributed the uptick to expectations that European governments could step up military spending amid heightened geopolitical uncertainty.

Chipmaker ASM International beats forecasts

Technology shares traded mixed. Dutch semiconductor equipment producer ASM International initially advanced on stronger-than-expected preliminary fourth-quarter bookings of approximately €800 million, supported by a rebound in Chinese demand. Although the stock turned negative in early afternoon dealings, it recovered to finish 0.81 percent higher. Preliminary revenue of €698 million also exceeded analyst estimates compiled by LSEG.

Imagem: imagem internet 29

Peer ASML, which reached an all-time high last week, closed broadly flat after falling as much as 3.6 percent during the session.

Gold reaches record

Safe-haven buying pushed U.S. gold futures to a 52-week peak of $4,673.30 an ounce, a 1.7 percent daily advance. Spot prices tracked futures higher, last trading at $4,672.66, up 1.69 percent.

Focus turns to Davos and eurozone data

The annual World Economic Forum meeting in Davos begins this week, providing another test for investor sentiment. Trump is scheduled to address delegates on Wednesday, and market participants will watch for further comments on trade policy.

On the macroeconomic calendar, eurozone inflation figures are due later in the week. No major European corporate earnings are expected over the coming days, leaving geopolitical developments as the primary driver of short-term market direction.

Crédito da imagem: AFP