Stock futures plummeted before trading early Tuesday morning as investors on Wall Street were shaken by President Trump’s threats to slap tariffs on several European nations as part of his campaign to acquire Greenland.
Dow futures were down more than 600 points, falling 1.26% while S&P 500 futures tanked nearly 100 points.
Futures on the tech-heavy Nasdaq fell more than 440 points, or 1.72% before the opening bell on Tuesday.
The selloff followed a fresh escalation in Trump’s trade rhetoric after he warned that the US would impose new tariffs on imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland beginning Feb. 1.
The tariffs would start at 10% and climb to 25% by June if European powers don’t cede Greenland to the US.
Market stress spiked sharply, with Wall Street’s fear gauge surging to its highest level in roughly two months.
The CBOE Volatility Index jumped above 19 after trading in the mid-15 range for most of January, signaling a sudden shift from complacency to heightened anxiety.
Traders piled into safe havens such as gold and the Swiss franc amid worries the standoff could spiral into a broader trade war with Europe.
Markets are now bracing for potential retaliation from Brussels, where European officials have warned that countermeasures are on the table. Traders are also watching closely for Trump’s next remarks, with investors wary that further escalation could deepen losses when Wall Street opens for regular trading.
The president has framed Greenland as a critical national security asset, arguing that US control of the Arctic territory is essential to counter growing Russian and Chinese influence in the region.
He has repeatedly cited Greenland’s strategic location, shipping routes and natural resources, casting the acquisition as vital to the US’ long-term defense posture.
In recent remarks, Trump has tied his tariff threats directly to that objective, warning that economic pressure on European allies is justified if it advances US security interests.
Treasury Secretary Scott Bessent echoed that argument over the weekend, saying the strategy is meant to “avoid a national emergency” by preventing future conflict and allowing the US to use its economic power instead of military force.
European leaders have flatly rejected the idea, stressing that Greenland is an autonomous, self-governing territory of Denmark and not for sale.
Trump has shown no sign of backing down, portraying resistance from Europe as shortsighted and suggesting that escalating tariffs are a necessary tool to force negotiations over what he sees as a once-in-a-generation strategic opportunity.
Asked by NBC News whether he would actually follow through on the tariff threat against European allies, the president replied: “I will, 100%.”
Speaking to reporters in Florida on Monday evening, Trump framed Greenland as non-negotiable from a US security standpoint.
“Look, we have to have it,” he said, brushing aside objections from European leaders.
“I don’t think they are going to push back too much. Look, we have to have it.”
Trump has also declined to rule out extreme measures to achieve that goal.
When asked directly whether he would use force to seize Greenland, the president responded: “No comment,” while reiterating that the tariff pressure campaign would move forward.
The president has dismissed European criticism as misplaced, arguing that leaders should be focused elsewhere.
“Europe ought to focus on the war with Russia and Ukraine because, frankly, you see what that’s gotten them,” Trump told NBC News.
“That’s what Europe should focus on — not Greenland.”
In a Truth Social post early Tuesday, Trump reiterated the national security argument for acquiring Greenland, declaring: “Greenland is imperative for National and World Security. There can be no going back — On that, everyone agrees!”
In an earlier statement, he appeared to go even further, writing: “The World is not secure unless we have Complete and Total Control of Greenland.”
Trump has also suggested diplomacy is continuing behind the scenes, saying on Truth Social that he had a “very good telephone call” with NATO Secretary General Mark Rutte and that a meeting with “various parties” would take place in Switzerland this week.
