A projection of the euro currency symbol is photographed on the facade of the European Central Bank (ECB) headquarters in Frankfurt am Main, western Germany, on December 30, 2025.
Kirill Kudryavtsev | AFP | Getty Images
Greenland Prime Minister Jens Frederik Nielsen has firmly maintained the island’s autonomy and rejected any suggestion that trade pressures could undermine the island’s political future.
“Recent U.S. statements, including the threat of tariffs, do not change that policy. We will not be under pressure,” Nielsen said, according to Google Translate.
Meanwhile, Europe is reportedly considering bringing out its trade bazooka and imposing tariffs worth 93 billion euros ($108 billion) on the United States after President Donald Trump threatened to impose tariffs on eight European countries if a deal to sell Greenland is not reached.
At an emergency meeting in Brussels on Sunday, France called on the European Union to use “anti-coercion measures,” the Financial Times reported.
The measure aims to deter what the EU defines as “economic coercion” that could affect trade and investment within the region. Retaliation could extend beyond tariffs to fiscal restrictions, intellectual property measures, and restrictions on public procurement.
This wide-ranging influence has given the instrument a reputation as Europe’s trade “bazooka”, although not all EU member states are keen on using it. Germany tends to be reluctant to use it, partly because of its heavy dependence on exports, Carsten Nickel, vice president of research at Teneo, told CNBC.
But no matter where you are on the continent, you can’t escape President Trump’s tariffs. Sectors most at risk include the automobile industry, a key industry in Germany. BMW Listed in Milan Stellantis As a member. French luxury brands LVMH and kering; Denmark’s Novo Nordisk and Swiss pharmaceutical giant, among others. Roche.
But no industry appears to be more targeted by President Trump than French wine and champagne, which he threatened on Tuesday with 200% tariffs after French President Emmanuel Macron was reported to be reluctant to join a “peace commission” on the Gaza Strip.
The market was shaken by the news. futures tied to Dow Jones Industrial Average Tuesday’s open pointed to a drop of more than 600 points. European stocks fell broadly on Monday, but safe-haven assets fell. gold and silver The new high comes just days after breaking the previous record.
And that’s just a reaction to President Trump’s first wave of additional tariffs. If the EU retaliates with targeted tariffs or trade bazookas, the economic impact is likely to be even greater.
—CNBC’s Holly Ellyatt contributed to this report.
What you need to know today
And finally…
Japan’s snap election: reckless risk or calculated gamble?
Less than six months after taking office, Japan’s new prime minister, Sanae Takaichi, dissolved the House of Representatives on January 23rd and called a snap election with voters going to the polls on February 8th. Analysts said the main purpose of the decision was to take advantage of Takaichi’s high approval ratings to strengthen the ruling Liberal Democratic Party and its coalition’s control of parliament.
Sam Johim, an economist at Swiss private bank EFG, said a stronger majority would allow Takaichi to project a stronger political mission to foreign leaders, including US President Donald Trump. He pointed out that Takaichi may meet with the US president as early as March.
— Lim Huijie
