FX.co ★ European Markets Head Lower on Tariff Threat

European stock markets were poised for a significant downturn on Monday, following a statement from US President Donald Trump regarding new tariffs targeting eight European countries. This move is intended to pressure these nations into accepting the purchase of Greenland. The affected NATO members—Denmark, Norway, Sweden, Finland, Germany, the UK, France, and the Netherlands—are facing the prospect of a 10% tariff starting February 1, which could escalate to 25% by June unless an agreement is reached. In response, European leaders are considering countermeasures, such as revisiting last year's proposal to impose tariffs on American products. French President Emmanuel Macron is said to be advocating for the activation of the EU's anti-coercion measures. In pre-market activities, futures for the Euro Stoxx 50 and Stoxx 600 indices diminished by 1.3% and 1%, respectively.