Fears of a global trade war have been revived by President Trump’s declaration of 10% tariffs on imports from eight EU countries over issues connected with Greenland on January 17, 2026. Against a backdrop of strained international relations, the move quickly infused fresh volatility into markets and brought up memories of earlier tariff increases. Investors swiftly reevaluated risk, expecting possible revenge, greater costs, and renewed pressure on world economic expansion.
Equity indexes responded quickly and broadly. In Europe, Euro Stoxx 50 futures dropped about 1.2%, and the DAX came under consistent pressure, suddenly terminating a phase in which European stocks had been overperforming their American peers. S&P 500 and Nasdaq futures dropped about 0.7-1.0% across the Atlantic heading into a U.S. holiday session, highlighting how the revived tariff threat is damaging worldwide risk appetite.
Safe-haven and risk assets deviated wildly. Gold gained from its role as a hedge, helped by inflation worries and development risks related to more trade barriers, whereas silver fell on expectations of lower industrial demand. The risk-off response was rather evident in cryptocurrency markets: Bitcoin dipped over 3% with around USD 750 million in long positions sold, and prominent altcoins like Ethereum, Solana, and XRP also sank, replicating the pattern observed during Trump’s 2025 tariff shocks.
