Trump’s Greenland tariffs: US President Donald Trump escalated his ambition to acquire Greenland on Saturday, threatening multiple European Union nations, traditional US allies in NATO, with tariffs of up to 25% until he achieves his goal of controlling the Danish territory.
These EU members, who came under Donald Trump’s ire on Saturday, include Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. The US President said that, from 1st February 2026, a 10% tariff will be levied on the above-mentioned EU members, which will increase to 25% from 1 June.
According to market experts, Trump’s Greenland tariffs on Denmark and other NATO countries will escalate geopolitical tensions and global uncertainty, potentially fueling a further surge in gold and silver prices. They said it is also suitable for the Indian stock market, as India and the EU are in the final stage of talks on a Free Trade Agreement (FTA). After Trump’s tariff threats against EU countries, the EU and India are expected to accelerate FTA discussions to finalize a deal.
The experts said that the Indian stock market may experience some volatility if the tariff escalates into a broader trade war. However, they maintained that, in the long term, this will have a positive impact on the Indian stock market, as the India-EU FTA would boost the Indian economy, especially in pharmaceuticals, textiles, gems and jewellery, steel and metals, automobiles, solar equipment, and leather.
Decoding Trump’s Greenland tariffs on Denmark and other NATO countries, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “The recent tariff announcement by President Trump is likely to boost gold and silver prices as investors seek safe-haven assets amidst escalating trade tensions. The tariffs imposed on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland may weaken the US dollar, making gold and silver more attractive. This could lead to increased demand and higher prices for precious metals. As for the Indian stock market, the tariffs may have a mixed impact. A weaker US dollar could make Indian exports more competitive, potentially benefiting sectors like IT and textiles. However, increased global trade tensions may also lead to market volatility, negatively impacting investor sentiment.”
Trump’s Greenland tariffs’ impact on gold and silver prices
On how Trump’s Greenland tariffs on Denmark and other NATO countries would impact gold and silver prices on Monday, Anuj Gupta, a SEBI-registered commodity expert, said, “Trump’s move to intimidate Denmark and other NATO countries may widen the trust deficit gap between the US and EU members. It may also fuel geopolitical tensions and global uncertainty, as EU members such as the US, France, and Germany have shown solidarity with Denmark. So, I am expecting a gap-up opening for gold and silver prices in the international and domestic markets when they resume trade on Monday.”
Gupta said that gold rates today are facing a hurdle at $4,650 per ounce, whereas silver rates today are facing a hurdle at $93 per ounce. He said that initially, these precious metals may try to overcome these hurdles and climb to a new peak if the tariff escalates into a serious trade war between the US and EU.
Negotiators are rushing to finalize a deal on the FTA by the time EU President Ursula von der Leyen comes to India later in January, with talks stuck on a few key issues like steel and automobiles, Mint reported quoting Bloomberg during German chancellor Friedrich Merz visit to India last week.
Trump’s Greenland tariffs impact on Dalal Street
On the impact the Indian stock market, SMC Global’s Srivastava said, “The Indian market may experience fluctuations, especially if the tariffs escalate into a broader trade war. Key sectors that could be affected include pharmaceuticals, textiles, gems and jewellery, steel and metals, automobiles, solar equipment, and leather.”
However, some market experts view this as a positive long-term development.
Sandeep Pandey, Co-founder of Basav Capital, said, “The tariffs are expected to fuel the FTA negotiations between India and the EU. As the FTA deal between India and the EU is in the final stage, we can expect this to become a reality after Trump’s intimidation of the EU countries. So, if any volatility emerges in the Indian stock market on Monday, it would be short-lived as the market is expected to respond to the strong Q3 results for the Indian banking majors like HDFC Bank, ICICI Bank, RBL Bank, Yes Bank, Punjab and Sind Bank, etc.”
Donald Trump tariffs news
US President Donald Trump on Saturday escalated his quest to acquire Greenland, threatening multiple European nations with tariffs of up to 25% until he achieves his goal of controlling the Danish territory.
Trump’s threats came as thousands of people protested in Greenland’s capital against his plan to acquire the mineral-rich island at the gateway to the Arctic.
Thousands more protested in Copenhagen and other Danish cities.
The US president aimed his ire at Denmark, a fellow NATO member, as well as several other European countries that have deployed troops in recent days to the vast autonomous territory with a population of 57,000.
If realised, Trump’s threats against Washington’s NATO partners would create unprecedented tension within the alliance.
From February 1, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would be subject to a 10% tariff on all goods sent to the United States, Trump said on his Truth Social platform.
“On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,” he wrote.
“These Countries, who are playing this perilous game, have put a level of risk in play that is not tenable or sustainable,” Trump said.
“Therefore, it is imperative that, to protect Global Peace and Security, strong measures be taken so that this potentially perilous situation ends quickly, and without question.”
Trump added that he was “immediately open to negotiation with Denmark and/or any of these Countries.”
(With inputs from AFP)
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