Stock Futures Slide After Trump's Tariff Threat

European shares mostly fell and US stock futures skidded Monday after President Trump threatened to slap a 10% extra tariff on imports from eight European countries because they oppose having America take control of Greenland.

• Germany's DAX lost 1.3% to close at 24,960.33 and the CAC 40 in Paris fell 1.9% to 8,101.96. Britain's FTSE 100 declined 0.4% to 10,190.26.
• Among US stock futures, the S&P 500 and the Nasdaq were down more than 1.2% on Monday, reports Reuters, while the Dow Jones Industrial Average was down 0.8%. US stock markets are closed Monday in observance of Martin Luther King Jr. Day.

• Trump said Saturday that he would charge a 10% import tax starting in February on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland because of their opposition to American control of Greenland.
• The European countries targeted by Trump blasted his threat to raise tariffs, saying they "undermine transatlantic relations and risk a dangerous downward spiral." The unusually strong joint statement was the most forceful rebuke from the European allies since Trump returned to the White House almost a year ago.
• Trump's moves are testing the strategic alignment and institutional trust underlying support from Europe, the largest trading partner and provider of financing to the United States, Stephen Innes of SPI Asset Management said in a commentary. "In a world where geopolitical cohesion within the Western alliance is no longer taken for granted, the willingness to recycle capital indefinitely into US assets becomes less automatic. This is not a short-term liquidation story. It is a slow rebalancing story, and those are far more consequential," Innes said.

• This week will bring a broader mix of earnings from airlines, industrial companies, and technology companies. United Airlines, 3M, and Intel are all scheduled to release their quarterly earnings results.
• The US central bank will get another update on inflation this week with the government's release of the personal consumption expenditures price index, or PCE. It is the Federal Reserve's preferred measure for inflation.
• The Fed's next policy meeting is in two weeks, when it is expected to keep its current benchmark interest rate as it strives to balance a slowing jobs market with stubbornly high inflation, which remains above the Fed's 2% goal.
• In Asia, shares were mixed after China reported that its economy expanded at a 5% annual pace in 2025, though it slowed in the last quarter. Strong exports, despite Trump's higher tariffs on imports from China, helped to offset relatively weak domestic demand.