Trump's battle for Greenland: Why the stock market hates it all

The banal marketplace mostly hates the constituent of surprise.

That could particularly beryllium the lawsuit successful the adjacent term, wherever euphoric banal valuations are present being met with the instrumentality of Trump commercialized warfare tariff madness.

"It’s a marketplace astonishment and feels similar a near hook by Apollo Creed successful the archetypal Rocky movie," Wedbush expert Dan Ives told Yahoo Finance.

The Dow Jones Industrial Average (^DJI), the S&P 500 (^GSPC), and the Nasdaq Composite (^IXIC) each suffered dense losses connected Tuesday morning, with investors bidding up safe-haven assets successful golden (GC=F).

President Trump connected Saturday warned that the US volition enact tariffs of 10% connected 8 European countries. The work volition escalate to 25% successful June, unless the US gains power of Greenland. The targets included cardinal trading partners similar the UK and Germany and came aft Trump threatened connected Friday to instrumentality power of Greenland adjacent if helium doesn't get the greenish airy from European lawmakers.

Read more: How Trump's tariffs impact your money

The rhetoric connected tariffs and Greenland has ratcheted up from determination arsenic Trump and his medication marque their mode to the World Economic Forum successful Davos, Switzerland. Trump is expected to conscionable with apical CEOs astatine the planetary confab and marque a highly anticipated code connected Wednesday.

"What President Trump is threatening connected Greenland is precise antithetic than the different commercialized deals," Treasury Secretary Scott Bessent reportedly said successful a property lawsuit connected the crushed astatine Davos. "So I would impulse each countries to instrumentality with their commercialized deals, we person agreed connected them, and it does supply large certainty."

He alluded to this infinitesimal being comparable to 2025's Liberation Day, erstwhile the unveiling of tariffs crushed markets, “I would accidental this is the aforesaid benignant of hysteria that we heard connected April 2.”

Bessent went connected to accidental astatine the property lawsuit that it would beryllium "unwise" for European countries to retaliate connected the tariff front.

Read more: The latest quality and updates connected Trump's tariffs

Citi strategists were among the archetypal connected Wall Street to connote the latest tariff tussle volition person staying power, and indispensable beryllium factored into planetary stocks.

"The latest step-up successful transatlantic tensions and tariff uncertainty dents the near-term concern lawsuit for European equities, casting uncertainty connected broad-based EPS inflection successful 2026," Citi strategist Beata Manthey wrote. "We truthful downgrade continental Europe to Neutral successful a planetary discourse for the archetypal clip successful implicit a year."

Manthey further downgraded "internationally exposed" sectors successful autos and chemicals owed to the caller commercialized uncertainty.