CNBC Daily Open: Trump's Greenland tariffs draw the EU into the fray

If economical sanctions are designed to use unit without firing a shot, past U.S. President Donald Trump has aimed straight astatine America's closest subject allies.

Trump said Saturday the U.S. volition impose a 10% tariff connected imports from 8 NATO nations — Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland — starting Feb. 1.

In a Truth Social post, Trump suggested that those countries were being penalized for sending troops to Greenland for a associated subject exercise, penning that they had "journeyed to Greenland, for purposes unknown."

Trump added that duties connected those nations would emergence to 25% connected June 1 until "a Deal is reached for the Complete and Total acquisition of Greenland."

The determination threatens to derail the EU-U.S. trade agreement reached successful August and risks retaliatory measures from Europe.

Duties slapped connected European nations "could apt mean a important E.U. pushback, wherever the E.U. could respond successful kind, starring to a benignant of commercialized warfare with the U.S.," Dan Alamariu, main geopolitical strategist astatine Alpine Macro, told CNBC implicit email earlier Trump announced the latest tariffs.

Until now, markets had mostly taken geopolitical tensions successful stride. Equity markets were up twelvemonth to day due to the fact that disputes involving Greenland, Iran oregon Venezuela had not yet pulled successful large economies oregon subject partners, said Eric Freedman, main concern serviceman for Chicago-based Northern Trust Wealth Management, past week.

That calculus whitethorn beryllium changing. By drafting European allies into the dispute, the tariffs summation the hazard of greater marketplace volatility. Major U.S. indexes were successful the reddish for the week adjacent earlier Trump's Greenland-related tariffs, signaling increasing unease among investors.

All of this unfolds arsenic the World Economic Forum begins today, Jan. 19, astatine Davos. World leaders volition convene for talks connected trade, information and geopolitical tensions, with Trump successful attendance — and acceptable to travel look to look with leaders of respective countries present successful his tariff crosshairs.

Just hardly 4 weeks into the year, and responsibility lines are already building. What emerges from the snowy peaks will, similar an avalanche, person a disproportionate interaction connected those below.

— CNBC's Holly Ellyatt, Chloe Taylor and Lee Ying Shan contributed to this report.

Global week ahead: Hopes that cooler heads tin prevail successful Davos

Over the years, I person seen galore versions of Davos: the fall-out from the Great Financial Crisis and European indebtedness crunch; the trading ungraded that rocked French banking giant Societe Generale; the dispersed of the Covid-19 epidemic and present the upending of the satellite bid that has been successful spot since the extremity of the Second World War.

Everyone has an sentiment astir this meeting, but 1 happening is existent — it is ne'er dull. And 2026 volition surely beryllium nary different. The hostility betwixt countries that telephone themselves allies is palpable going into this meeting.

— Leonie Kidd