European stock markets took a hit on Monday, falling across the board due to heightened tensions between the US and European countries over Trump's latest tariff threat. The President's announcement of additional tariffs on eight European nations, including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, sent shockwaves through global markets.
As investors turned to safe-haven assets, gold prices hit record highs, rising 1.6% to $4,671 per ounce, while US gold futures for February gained 1.7%. Silver also surged to a new high of $94.08 an ounce before easing slightly. The dollar, meanwhile, fell 0.3% against a basket of currencies.
European carmakers were among the hardest hit, with major players like Volkswagen, BMW, and Mercedes-Benz plummeting more than 2% in response to the tariff threat. Stellantis, the owner of Peugeot, also took a significant hit, falling nearly 2%.
Industry analysts warn that businesses operating within the EU could exploit loopholes created by the tariffs, making them less effective. "For businesses, this means another period of uncertainty around investments and exports to the US," said Carsten Brzeski, global head of macro analysis at ING.
The economic impact of Trump's tariff threat is expected to be significant, with estimates suggesting a 0.2 percentage point shave in European GDP growth. The UK could be particularly hard hit, with forecasts predicting a reduction in GDP by 0.3%-0.75% and potentially triggering a recession in the worst-case scenario.
EU ambassadors are now preparing retaliatory measures in case Trump follows through on his tariff threat, which is seen as a real escalation in the President's campaign to claim Greenland. Geopolitical tensions have fueled gold prices to new highs, according to analysts at StoneX and XTB.
As investors turned to safe-haven assets, gold prices hit record highs, rising 1.6% to $4,671 per ounce, while US gold futures for February gained 1.7%. Silver also surged to a new high of $94.08 an ounce before easing slightly. The dollar, meanwhile, fell 0.3% against a basket of currencies.
European carmakers were among the hardest hit, with major players like Volkswagen, BMW, and Mercedes-Benz plummeting more than 2% in response to the tariff threat. Stellantis, the owner of Peugeot, also took a significant hit, falling nearly 2%.
Industry analysts warn that businesses operating within the EU could exploit loopholes created by the tariffs, making them less effective. "For businesses, this means another period of uncertainty around investments and exports to the US," said Carsten Brzeski, global head of macro analysis at ING.
The economic impact of Trump's tariff threat is expected to be significant, with estimates suggesting a 0.2 percentage point shave in European GDP growth. The UK could be particularly hard hit, with forecasts predicting a reduction in GDP by 0.3%-0.75% and potentially triggering a recession in the worst-case scenario.
EU ambassadors are now preparing retaliatory measures in case Trump follows through on his tariff threat, which is seen as a real escalation in the President's campaign to claim Greenland. Geopolitical tensions have fueled gold prices to new highs, according to analysts at StoneX and XTB.
It's like, hello, international trade isn't supposed to be a game of risk-reward... especially not when it involves nuclear options 
. I mean, what even is the point of "claiming Greenland" anymore? Did Trump really think that would distract from his economic woes? 
And now European carmakers are getting hammered - talk about an "export" problem 
. Can we just have a peaceful resolution to this mess before someone gets hurt (or bankrupt)?
I'm so worried about my kids' future with all this trade war drama. What's going on between these countries is making me nervous. As a parent, it's hard to see how tariffs are going to affect the everyday lives of people, especially young families like mine. I just want to know what's going to happen to the economy and whether my kids will be able to find jobs when they grow up. All this talk about gold prices going up is making me think about saving more for their future, but I'm not sure if that's even a good idea with inflation on the rise... 
Just saw the news about Trump's tariff threats and it's crazy how it's affecting European markets 
! I mean, I get why they're worried, but come on, isn't this just a big game of tariffs and trade wars? 
The prices for gold are insane right now, $4,671 an ounce?! 
And what about the impact on carmakers like VW and BMW? It's not like they can just magically make more cars in Europe to replace those sold in the US. 
And don't even get me started on the recession stuff... 0.3% to 0.75% GDP growth reduction? That's not good news for anyone 
, it's like a big game of chicken where everyone's just trying to outdo each other. Can't they just talk things through? 
, especially our car manufacturers who are already struggling 
. And now, we've got businesses looking for loopholes to exploit 
, which just means more uncertainty and risk for everyone involved 
.
but I think we need to find a way to calm things down and talk some sense into Trump 
. This tariff row is getting out of hand 
, and it's only going to hurt innocent people in the long run 
.
EU ambassadors are already preparing retaliatory measures... let's hope both sides can find a way to talk things out 
. Can't we all just get along? 
. I just wish Trump would calm down and think about how his actions affect everyone else 