Economy News

Dow drops 870 points as Trump threatens eight European countries with tariffs over Greenland

Wall Street had its worst day since October on Tuesday 20 January, the first trading session after President Donald Trump announced new tariffs on eight European countries that oppose his bid to acquire Greenland. WBUR reports the S&P 500 fell 2.1% to 6,796.86, the Dow 870.74 points (1.8%) to 48,488.59 and the Nasdaq 2.4%. Nvidia lost 4.4% and Apple 3.5%; gold rose 3.7% and silver 6.9%.

ABC News says the plan is a 10% tariff from 1 February on goods from countries including Denmark, France, Germany and the UK, rising to 25% on 1 June. Trump wrote that the tariff would be due “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”

“The U.S.-EU trade war is back on” — Tina Fordham, geopolitical strategist, via Khaleej Times

How each outlet framed it

• WBUR — the scoreboard: index losses, rising Treasury yields and a rush into gold and silver.
• ABC News — the policy: the tariff timetable, a separate 200% threat on French wine, and Ursula von der Leyen's call to respect Greenland's sovereignty.
• Khaleej Times (Reuters) — the European view before the open: the eight countries' joint statement, Ireland's warning that the EU would retaliate, and Berenberg's view that it would be “a small setback” for European markets.

Where the numbers differ: WBUR has the Dow down 1.8% and the S&P 500 2.1%; ABC News rounds to 1.7% and 2%.

What happened next: the next day in Davos, Trump said he and NATO chief Mark Rutte had formed “the framework of a future deal” on Greenland and that he would not impose the February tariffs, Axios reported. The S&P 500 rose nearly 1.5%.