European Union diplomats say the bloc is preparing retaliatory measures after President Donald Trump threatened new tariffs on several European allies in an escalating bid for U.S. control of Greenland.
Europe Will ‘Not Be Blackmailed’
EU ambassadors reached a broad agreement Sunday to intensify efforts to dissuade Trump from imposing tariffs, while also drafting countermeasures should the duties move forward, according to a Reuters report.
This comes in response to Trump’s threats of escalating tariffs starting Feb. 1, against Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain and Norway for opposing his plans to bring the North Atlantic island under the control of the United States.
The bloc is considering a tariff on the €93 billion, or $107.7 billion worth of imports from the U.S., starting Feb. 6 after a six-month suspension.
Besides this, member states are also considering the never-before-used Anti-Coercion Instrument, which could curb access to public tenders, investments, banking activity or trade in services where the U.S. holds a surplus, including digital services.
On Sunday, President of the European Council, António Costa, said in a post on X that “the EU stands in full solidarity with Denmark and the people of Greenland,” while warning against tariffs by the U.S., saying that they “undermine transatlantic relations and risk a dangerous downward spiral.”
As a last resort, German Christian Democrat lawmaker Juergen Hardt said that the bloc could boycott the upcoming FIFA World Cup that is scheduled to take place in the U.S. later this year, to bring Trump “to his senses on the Greenland issue.”
Earlier this month, Danish Prime Minister Mette Frederiksen said in a statement to the media that “Europe will not be blackmailed,” while urging the U.S. to “stop threatening a historically close ally.”
Stock Futures Drop, Precious Metals Spike
U.S. stock futures are deep in the red on Sunday evening, amid fresh geopolitical and trade tensions with major U.S. trade partners.
The S&P 500 Futures are down 0.82%, or 57.50 points, trading at 6,918.75, followed by Nasdaq Futures at 25,404.25, down 0.11%, or 284 point and finally Dow Futures, trading at 49,187.00, down 0.73%, or 354 points, ahead of a federal holiday on Monday, on the occasion of Martin Luther King Day.
As a result, U.S. equity and bond markets will be closed Monday, though several futures markets, including those traded on CME Globex, will remain open.
Silver spot prices touched a new record high of $94 before retreating to $93.411 per ounce, after rallying 3.71% during the day. Gold spot prices similarly touched a new record high of $4,675 an ounce, currently trading at $4,666.41, up 1.51%.
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