Europe in Red: Trump's Tariff Threats Send Markets Plunging
European stocks weakened on Monday (January 19th) after markets reacted to new tariff threats from US President Donald Trump linked to Washington's push to "buy" Greenland. The pan-European STOXX 600 index closed down around 1%, while pressure was also felt on major exchanges: France's CAC 40 -1.4%, Germany's DAX -1.2%, and the UK's FTSE 100 -0.5%.
The main trigger was Trump's statement last weekend threatening to impose 10% tariffs starting February 1 on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, and increasing them to 25% on June 1 if no agreement is reached on Greenland. This maneuver rekindled concerns that the US-Europe trade dispute could dampen global growth and demand prospects, prompting investors to reduce exposure to riskier assets.
The hardest-hit sectors were automotive and cyclical stocks. Among automakers, BMW fell about 4.2%, Volkswagen weakened 3.3%, and Porsche fell about 2.6% as the market recalculated the tariff risks to its supply chain and sales to the US.
Source: Newsmaker.id
