Wall Street braces for stocks to sink as Trump ramps up tariff threats over Greenland

• Trump set Feb. 1 as the start date for tariffs on Denmark, Norway, Sweden, France, Germany, UK, Netherlands, and Finland, with rates escalating from 10% to 25% by June if Greenland is not transferred to US control
• Market stress spiked sharply with the VIX 'fear gauge' jumping above 19 from mid-15 range, while traders moved into gold and Swiss francs anticipating potential retaliatory measures from Brussels
• Trump framed Greenland as 'non-negotiable' for national security, citing Arctic strategic importance against Russian and Chinese influence, while European leaders flatly rejected the proposal, noting Greenland is an autonomous Danish territory

Market Summary: Trump Tariff Threats Over Greenland Trigger Stock Selloff

Key Market Movements:

U.S. stock futures plunged Tuesday morning ahead of the opening bell, with Dow futures down over 600 points (-1.26%), S&P 500 futures falling nearly 100 points, and Nasdaq futures dropping more than 440 points (-1.72%). The VIX volatility index—Wall Street's "fear gauge"—surged above 19 from mid-15 levels, reaching its highest point in approximately two months.

Catalyst:

President Trump threatened to impose tariffs on eight European nations—Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland—beginning February 1. Tariffs would start at 10% and escalate to 25% by June unless European powers cede Greenland to the U.S.

Key Developments:

Trump framed Greenland as a "non-negotiable" national security asset, citing Arctic shipping routes, natural resources, and countering Russian and Chinese influence. Treasury Secretary Scott Bessent supported the strategy as avoiding future conflict through economic rather than military pressure. European leaders have flatly rejected the proposal, emphasizing Greenland's autonomous status under Denmark.

Market Implications:

Investors fled to safe-haven assets including gold and the Swiss franc amid fears of a broader U.S.-Europe trade war. Markets await potential retaliatory measures from Brussels and further statements from Trump. The president confirmed he would "100%" follow through on tariff threats and refused to rule out using force, stating "no comment" when asked directly.

Trump indicated diplomatic discussions continue, mentioning a planned meeting in Switzerland this week. European officials have warned countermeasures are under consideration, heightening uncertainty for market participants.