European stocks opened sharply lower on Monday, as traders reacted to US President Donald Trump's threat to raise tariffs on several European countries if they oppose his bid to buy Greenland.
The European Stoxx 600 index fell by about 1.1% to 607.54 points, the German DAX index dropped by about 1.4% to 24930.81 points, the British FTSE index declined by about 0.4% to 10193.30 points, while the French CAC index fell by about 1.7% to 8114.77 points.
This decline comes after Trump announced on Saturday that eight European allies would face increased tariffs, starting at 10% on February 1 and rising to 25% on June 1, if no agreement is reached allowing the United States to buy Greenland, a semi-autonomous territory belonging to Denmark.
Trump said via his social media platform Truth Social that goods from eight NATO member states exported to the United States would face escalating tariffs “until a full and final agreement is reached to purchase Greenland.”
He added that the proposed tariffs would target Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. European leaders, for their part, described the tariffs as unacceptable and affirmed their full support for Denmark.
Markets are also expected to focus on the World Economic Forum events that kick off this week in Davos, Switzerland, where Trump is scheduled to speak on Wednesday.
Markets do not expect major earnings results this week, while inflation data will be released in the Eurozone.
