Stocks tumbled in early trading on Tuesday as President Donald Trump threatened tariffs on multiple European countries as part of a push for U.S. control of Greenland. The Dow Jones Industrial Average fell 735 points, or 1.4%, while the S & P 500 declined 1.5%. The tech-heavy Nasdaq dropped 1.8%.

As the EU calls Trump's threat to tariff allies for rejecting his bid for Greenland a mistake, Denmark's leader laments "being threatened by our closest ally."

Commerce Secretary Howard Lutnick voiced confidence that the major trade agreement signed with the European Union last year would hold through the current turmoil. President Donald Trump’s threats of tariffs against several EU countries in response to their pushback against handing Greenland over to the United States have triggered outrage among the bloc,

In a joint statement, leaders of eight countries said they stand in "full solidarity" with Denmark and Greenland. Denmark's Prime Minister Mette Frederiksen added: "Europe will not be blackmailed."

Europeans were reeling Sunday from President Trump's announcement​ that eight countries will face a 10% tariff for opposing American control of Greenland.

German soldiers left Greenland after a short, pre-planned mission, contrary to online narratives that said they withdrew early because of the U.S. president’s threat to impose tariffs on European allies opposed to his administration's bid to buy the Arctic island.

After the chastening experience of Liberation Day in 2025 when heavy tariffs were imposed by the Trump administration, only for many to be partially rescinded a week later, probability markets are understandably more circumspect about the prospects for the latest instalment.

This year’s World Economic Forum is taking place as tensions between the U.S. and its allies have begun to rise over U.S.