CNBC Daily Open: The EU has a nuclear option to deal with Trump's Greenland tariffs — and is mulling over it

Greenland's Prime Minister Jens-Frederik Nielsen stood firm connected the island's self-governance, saying connected Monday that the "latest statements from the US, including threats of tariffs, bash not alteration that line. We volition not beryllium pressured," according to a Google translation.

Europe is reportedly mulling bringing retired its commercialized "bazooka" and imposing 93 cardinal euros ($108 billion) worthy of tariffs connected the U.S., successful effect to President Donald Trump threatening to deed 8 European countries with tariffs if a woody implicit the merchantability of Greenland isn't reached.

At an exigency gathering successful Brussels connected Sunday day section time, France pushed for the European Union to usage the "Anti-Coercion Instrument," reported the Financial Times.

According to the EU, the instrumentality is designed to deter "economic coercion" that pushes for argumentation changes that could impact commercialized and concern successful the bloc. Retaliation tin impact not conscionable measures successful commercialized and fiscal markets, but besides "trade-related aspects of intelligence spot rights" and "public procurement."

The scope of repercussions has caused the ACI to beryllium seen arsenic a atomic enactment against Trump's tariffs. That's besides wherefore not each EU members are up for its deployment. Germany has tended to beryllium much reticent astir utilizing it partially due to the fact that its system is much babelike connected exports, Carsten Nickel, lawman manager of Research astatine Teneo, told CNBC.

But wherever you are connected the continent, there's nary escaping Trump's tariffs. Sectors astir exposed see the car industry, which number Germany's BMW and Milan-listed Stellantis arsenic members, luxury names specified arsenic France's LVMH and Kering, and Denmark's and Switzerland's pharmaceutical giants Novo Nordisk and Roche, respectively.

Markets were rattled by the news. Futures tied to the Dow Jones Industrial Average bespeak that the scale is acceptable to unfastened Tuesday with a driblet of 378 points. European stocks broadly fell connected Monday, portion safe-haven assets gold and silver changeable up to deed caller highs, conscionable days aft breaking erstwhile records.

And that's conscionable the absorption from the archetypal circular of tariffs from Trump. If the EU does deed back, whether with retaliatory tariffs oregon its commercialized bazooka, expect the fallout to beryllium bigger and much widespread.  

— CNBC's Holly Ellyatt contributed to this report.

Europe weighs utilizing commercialized 'bazooka' against the U.S. France connected Sunday reportedly pushed for the EU to usage its strongest economical counter-threat to the U.S., known arsenic the "Anti-Coercion Instrument," to retaliate against Trump's Greenland tariffs.

Powell to be Supreme Court arguments. The Federal Reserve seat plans to be oral arguments connected Wednesday astatine the U.S. Supreme Court, in a lawsuit challenging the powerfulness of Trump to occurrence Fed Governor Lisa Cook, a idiosyncratic acquainted with the concern told CNBC.

Putin invited to articulation Trump's 'Board of Peace,' Kremlin says. The council, created by Trump past year, is seen arsenic a conveyance to oversee the reconstruction of Gaza. Trump reportedly wants nations to pay $1 billion for imperishable seats connected the board.

U.S. futures fall. On Monday nighttime stateside, banal futures indicated large indexes were poised to unfastened lower, with a driblet of much than 300 points for the Dow. Markets were closed for a holiday. The pan-European Stoxx 600 lost 1.19% arsenic shares of car giants tumbled.

[PRO] Europe has an borderline amid Greenland tariffs. That's according to Deutsche Bank analysts, who said that "the U.S. has one cardinal weakness" that could springiness European countries leverage.

Trump is going to Davos — present are the large names who aren't

U.S. President Donald Trump is attending the World Economic Forum's yearly gathering successful person, the archetypal clip since helium addressed the forum during his archetypal word successful 2020. This time, helium volition bring the "largest" U.S. delegation yet, according to WEF.

Danish authorities representatives were invited and decided not to attend, a WEF spokesperson said connected Monday, arsenic the quality implicit Greenland intensified. Chinese President Xi Jinping is not on WEF's attendance list, and neither are the leaders of Brazil and India.

— Lucy Handley