LONDON / NEW YORK — Geopolitical tremors shook global financial markets on Monday, January 19, 2026, as President Donald Trump escalated his bid to acquire Greenland into a full-scale trade confrontation with Europe. The resulting “flight to safety” sent precious metals to unprecedented heights while bleeding value from major equity indices.
The latest friction stems from a “fundamental disagreement” over the Danish autonomous territory. Following failed negotiations on Saturday, President Trump announced a two-tier tariff structure targeting Denmark and seven other European allies, citing “national security” as the driver for the US takeover of the strategic Arctic island.
1. Precious Metals: The New Gold Standard
As trade war fears compounded existing tensions regarding Iran and Venezuela, investors abandoned riskier assets in favor of traditional safe havens.
- Gold: The yellow metal surged to an all-time peak of $4,690.59 per ounce.
- Silver: Following gold’s lead, silver struck a record high of $94.12.
- Currency Shift: The US Dollar softened against major peers as investors moved capital into the Euro, Sterling, and the Japanese Yen.
2. The Greenland Tariff Roadmap
The White House has set a concrete timeline for levies on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland:
| Effective Date | Tariff Rate | Condition for Removal |
| February 1, 2026 | 10% | Agreement to US Greenland Purchase |
| June 1, 2026 | 25% | Continued refusal to submit to US demands |
The EU Response: French President Emmanuel Macron is reportedly pushing to activate the EU’s “Anti-Coercion Instrument.” This never-before-used mechanism would allow the 27-nation bloc to slap retaliatory levies on roughly €93 billion ($101 billion) of American goods.
3. Global Market Snapshot (0230 GMT)
Equity markets across Asia and Europe traded in the red, with investors wary of a “downward spiral” in transatlantic relations.
- Asian Retreat: Tokyo’s Nikkei 225 fell 1.0%, while Hong Kong’s Hang Seng dropped 0.7%.
- US Futures: Wall Street futures signaled a weak opening, with the Dow already trending down 0.2%.
- Tech Resilience: In a rare bright spot, Seoul and Taipei markets remained buoyant despite threats of 100% tariffs from US Commerce Secretary Howard Lutnick against chipmakers who do not move production to the US.
4. Expert Analysis: From Rhetoric to Policy
“The structural risk is that fragmentation keeps rising, with more politicised trade and more conditional supply chains. Even if the immediate threat is negotiated down, the policy risk for companies has reached a new threshold.” — Charu Chanana, Chief Investment Strategist at Saxo Markets.