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US stock futures fell sharply on Monday after President Donald Trump warned of higher tariffs on imports from eight European countries over their opposition to US control of Greenland.
The futures for the S&P 500 dropped 0.9 percent, while the Dow Jones Industrial Average futures declined 0.8 percent. The sell-off reflected growing investor concern over rising trade tensions between Washington and its European allies.
Trump said the United States would impose an additional 10 percent tariff on imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. He accused the countries of undermining US strategic interests by resisting America’s push to take control of Greenland.
In response, the affected European nations issued a rare joint statement condemning the move. They warned that the tariff threat could damage transatlantic relations and trigger a dangerous economic escalation. The statement marked the strongest collective rebuke from Europe since Trump returned to the White House nearly a year ago.
Market analysts say the dispute is testing long-standing trust between the US and Europe. Stephen Innes of SPI Asset Management said investors may begin to reassess their exposure to US assets as geopolitical uncertainty rises.
According to Innes, global capital flows depend heavily on political stability and alliance cohesion. He warned that a gradual shift away from US markets could have serious long-term consequences.
Meanwhile, Asian markets delivered mixed performances. China reported 5 percent economic growth for 2025, although expansion slowed in the final quarter. Strong exports helped offset weaker domestic demand, despite higher US tariffs on Chinese goods.
Hong Kong’s Hang Seng Index fell 1.1 percent, while Shanghai’s Composite Index gained 0.3 percent. In Japan, the Nikkei 225 slipped 0.7 percent ahead of a possible snap election announcement by Prime Minister Sanae Takaichi.
Elsewhere, South Korea’s Kospi rose 1.3 percent, driven by gains in technology stocks. Taiwan’s market also advanced, while India’s Sensex declined 0.6 percent.
Back on Wall Street, stocks ended last week slightly lower as the early earnings season wrapped up. Investors now await results from major companies, including United Airlines, 3M, and Intel, which could provide insight into consumer spending and inflation pressures.
In commodities trading, US crude oil slipped 28 cents to $59.06 per barrel, while Brent crude fell to $63.79. Gold prices climbed 1.8 percent, and silver surged more than 5 percent. The US dollar strengthened against the Japanese yen, while the euro also edged higher.
