U.S. Stocks Under Pressure and Gold Soared After Trump Threatened Additional Tariffs on European Allies

Barry Adams
19 Jan, 2026
New York City

U.S. indexes traded down in early trading in off-market on Monday amid elevated tariff frictions and rising geopolitical tensions. 

The S&P 500 Index decreased 0.8%, and the tech-heavy Nasdaq Composite decreased 1% after the U.S. president threatened additional tariffs on goods from eight European allies. 

Trump threatened an additional 10% tariff on shipments from Denmark, Norway, Sweden, Finland, the Netherlands, the UK, France, and Germany. 

The tariffs would kick in on February 1 and increase to 25% on June 1 if a deal is not reached to allow the U.S. to "purchase" Greenland.  

European automakers and luxury goods stocks dropped between 3% and 5% following the worries of a renewed tariff war. 

Broader European market indexes dropped between 0.5% and 1.5% in London, Paris, and Frankfurt. 

Last week, Wall Street indexes turned lower amid heightened worries about the Fed's independence, the chaotic Trump administration, and constantly changing trade policy. China and India overcame U.S. tariff pressure amid shifting trade patterns.

The S&P 500 index and the Nasdaq Composite declined around 0.5% after a week of hectic trading, and investors weighed two inflation reports against earnings optimism. 

On Monday, gold and silver hit fresh new highs in New York, London, and Shanghai amid rising geopolitical tensions after the U.S. president renewed his threats to "purchase" Greenland and slapped additional tariffs on European allies. 

This week about 90 U.S. companies are set to release their quarterly results, including earnings updates from Netflix, GE Aerospace, Schlumberger, Intel, Proctor & Gamble, and Johnson & Johnson.