Global stock markets are preparing for turbulence after U.S. President Donald Trump threatened eight European countries with new tariffs over Greenland. The plan could see a 10% levy on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland from February 1, rising to 25% by June 1. Investors fear that the announcement could disrupt trade, destabilize Nato alliances, and unsettle European businesses. IG’s weekend trading data suggested the London Stock Exchange may fall when it reopens, while Wall Street is expected to follow suit on Tuesday. Precious metals are rising as traders seek safe-haven assets, with gold approaching record highs and silver climbing steadily. Tony Sycamore, a market analyst at IG, noted that the tariffs “heightened concerns over a potential unravelling of Nato alliances and disrupted last year’s trade agreements with several European nations, driving risk-off sentiment in stocks and boosting safe-haven demand for gold and silver.” IG data suggested the FTSE 100 could drop by 0.9%, while the Dow Jones Industrial Average may fall 0.5%. Gold was trading 0.6% higher at $4,625 an ounce, near last week’s record of $4,642, while spot silver gained 0.5% to $90.41 per ounce. European leaders responded critically. UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen warned that Trump’s tariff threats could undermine the Nato alliance. Susannah Streeter, chief investment strategist at Wealth Club, described the move as “fresh economic chaos” and a setback for the UK economy. Companies exporting to the U.S. face added uncertainty. Many already absorb existing tariffs, leaving little room to absorb further duties. Analysts say the new levies are likely to be passed on to American consumers, adding costs and affecting trade relations. European business groups are urging the EU to act. Germany’s engineering association, VDMA, called on the European Commission to consider using its “anti-coercion instrument” against the U.S. Bertram Kawlath, VDMA president, said, “If the EU gives in here, it will only encourage the U.S. president to make the next ludicrous demand and threaten further tariffs.” Hildegard Müller, president of the German auto industry association, warned that the costs of the proposed tariffs would be “enormous” for German and European companies. In the UK, William Bain, head of trade policy at the British Chambers of Commerce, said new tariffs would be “more bad news for UK exporters” and urged the government to push for the frozen UK-US trade deal to be implemented. “Trade is one way to boost the economy, and transatlantic success depends on reducing, not raising, tariffs. The government must prioritize implementing the economic prosperity deal and negotiate calmly to remove the threat of these new tariffs,” he added. The threat of tariffs has also heightened geopolitical concerns. Markets are wary of a breakdown in transatlantic relations, and investors are increasingly turning to safe assets. Gold and silver have seen gains as fears of economic disruption grow. Trump’s latest tariff threats follow a series of trade interventions in key U.S. trading partners. The announcements underline the unpredictability of U.S. trade policy and its potential impact on global markets, raising concerns about further escalation in the weeks ahead. As Monday trading resumes, investors will be closely monitoring developments, European responses, and any further U.S. government actions. The situation highlights the fragile balance between political ambitions and global market stability, with millions of dollars at risk for exporters, manufacturers, and investors on both sides of the Atlantic.