Global stock markets experienced a significant downturn on January 20, 2026, following threats by former U.S. President Donald Trump to impose new taxes, or “tariffs,” on several European countries. Trump announced these tariffs—starting at 10% on February 1st and rising to 25% by June 1st—on eight NATO allies including Denmark, France, and Germany. The tariffs were threatened because these nations were reportedly opposing his efforts for the United States to purchase Greenland.
European leaders, meeting at the World Economic Forum in Davos, Switzerland, strongly rejected Trump’s demands, stating that Greenland is not for sale and criticizing the tariff threats as a “mistake.” This dispute made investors worried, causing major stock indexes to drop sharply and pushing up the prices of safe investments like gold and silver.
Amazon CEO Andy Jassy also noted that these tariffs are causing product prices to increase on the Amazon platform because the company and its sellers have run out of previously bought inventory that was protected from the tariffs. The entire incident has been described as the “Greenland crisis,” highlighting major tension between the U.S. and its European allies over trade and territory.
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