By Micah Jonah
January 21, 2026
Global markets tumbled as United States President, Donald Trump intensified his push to acquire Greenland, citing US security concerns over China and Russia’s Arctic ambitions. His threats to impose steep tariffs on Denmark and seven European nations triggered the sharpest Wall Street sell-off since October.
On Tuesday, the S&P 500 dropped 2.1 percent, the Nasdaq Composite fell 2.4 percent, and the Dow Jones slid 1.8 percent. The US dollar weakened 0.8 percent against major currencies. European markets mirrored the decline, with London’s FTSE 100 down 0.7 percent and Frankfurt’s DAX over 1 percent lower. Gold, a safe haven in times of uncertainty, surged nearly 2 percent to a record $4,700 an ounce.
Trump has refused to rule out military action to secure Greenland, despite both the US and Denmark being NATO members. Copenhagen has repeatedly rejected any sale, warning that a forced takeover could fracture the 32-member alliance.
The European Union plans an emergency meeting Thursday to discuss responses, including potential restrictions on US tech firms under the bloc’s anti-coercion rules. European Commission President, Ursula von der Leyen stressed that while Europe seeks cooperation on Arctic security, national sovereignty cannot be compromised.
Trump remains defiant, stating that “things are going to work out pretty well” ahead of meetings with NATO leaders at the World Economic Forum in Davos.
