Wall Street Falls as Trump Threatens NATO Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. markets tumbled Tuesday morning after President Trump threatened tariffs on eight NATO members amid a push to acquire Greenland. The S&P 500, Dow, and Nasdaq all dropped more than 1.5%, led by losses in tech and retail. Gold and silver soared as investors fled to safe havens during the growing geopolitical standoff.
Trump Tariffs Shake Markets: Quick Looks
- S&P 500 falls 1.5%, Dow down 682 points
- Nasdaq slumps 1.7%, led by tech sector sell-off
- Trump threatens 10% tariffs on eight NATO allies
- Targeted nations include Denmark, France, Germany, UK, Sweden, Finland
- Gold up 3.2%, silver up 7% as safe havens rally
- Nvidia, Amazon, JPMorgan, Caterpillar all post steep losses
- EU leaders explore retaliatory tariffs, anti-coercion measures
- Trump ties Greenland move to Nobel Prize rejection
Deep Look: Stocks Sink as Trump Tariff Threat Hits Markets
NEW YORK — Global markets reacted sharply Tuesday morning as President Donald Trump’s renewed trade threats against NATO allies sent tremors through Wall Street and European exchanges. At the center of the turmoil: Trump’s push to bring Greenland under U.S. control, now backed by the threat of sweeping import tariffs.
The S&P 500 tumbled 1.5%, marking its steepest drop in weeks and pulling back from the record it hit early last week. The Dow Jones Industrial Average plunged 682 points, or 1.5%, while the tech-heavy Nasdaq composite slid 1.7%.
Markets were closed Monday for the Martin Luther King Jr. holiday, making Tuesday the first opportunity for investors to react to Trump’s Saturday announcement that a 10% import tax would be imposed in February on goods from eight European countries: Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.
“This is the first real market jolt tied to Greenland — and it’s serious,” said investment strategist Rachel Levesque of RedPine Asset Management. “This isn’t just bluster anymore. It’s policy signaling.”
Tech and Retail Lead the Sell-Off
The losses were widespread, but tech stocks bore the brunt due to their oversized influence on market direction.
- Nvidia sank 3.2%
- Amazon dropped 2.7%
- JPMorgan Chase fell 1.9%
- Caterpillar declined 1.3%
Retail, banking, and industrial sectors also saw steep declines as concerns mounted over supply chain disruptions and weakened consumer sentiment in the face of trade uncertainty.
The energy sector was a rare winner, boosted by a 1.5% rise in U.S. crude oil prices, with Exxon Mobil gaining 1.5%.
Flight to Safety: Gold and Silver Surge
As tensions rose, investors fled riskier assets and poured into precious metals, with:
- https://newsroom.ap.org/homeGold climbing 3.2% to $4,733/oz
- Silver soaring 7% to $95.30/oz
Both metals approached record highs, highlighting the market’s growing unease over Trump’s escalating standoff with Europe and the implications for the global economy.
Mixed Signals in Bond Markets
In the bond market, Treasury yields moved in different directions as investors reassessed risk:
- The 10-year yield rose to 4.28%, up from 4.23% on Friday
- The 2-year yield slipped slightly to 3.59%, down from 3.60%
These movements reflect investor uncertainty about both long-term growth and short-term rate stability as geopolitical tensions escalate.
Global Fallout from Trump’s Greenland Push
European markets also sank:
- France’s CAC 40: down 1.2%
- Germany’s DAX: down 1.5%
- UK’s FTSE 100: down 1.3%
The sell-off followed Trump’s threat to punish countries opposing his bid to incorporate Greenland — a Danish territory — into the United States.
Trump has framed the island as crucial to U.S. national defense, suggesting that Greenland’s Arctic location offers unmatched strategic value amid rising tensions with Russia and China.
Diplomatic Freeze Over Greenland
The latest market disruption comes as European leaders weigh countermeasures, including:
- Retaliatory tariffs
- Suspension of trade deals
- First-time use of the EU’s Anti-Coercion Instrument, a mechanism designed to deter economic bullying
Trump’s approach has fueled backlash, particularly after his Monday-released text message to Norwegian Prime Minister Jonas Gahr Støre, where he linked the tariff threats to being snubbed for the Nobel Peace Prize.
“I no longer feel obligated to think purely of Peace,” Trump reportedly wrote.
European leaders have condemned the move as provocative and dangerous, while financial analysts warn that a full-blown transatlantic trade war could cripple global growth in early 2026.
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