European stock markets dropped sharply on Monday, while gold and silver surged to record highs after US President Donald Trump threatened additional tariffs on eight European nations over Greenland. France’s CAC fell 1.8%, Germany’s DAX and Italy’s FTSE MIB were down 1.3%, and the UK’s FTSE 100 fell 0.4%. Gold rose 1.6% to $4,671 an ounce, briefly hitting $4,689, while silver climbed to a record $94.08 before easing to $93.15. Investors sought safe-haven assets amid rising geopolitical tensions. European carmakers were particularly affected, with Volkswagen, BMW, and Mercedes-Benz dropping more than 2%, and Stellantis falling nearly 2%. Analysts warned that uncertainty around US tariffs could affect investment and exports to the US. Trump announced a 10% tariff effective February 1 on all goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland until Greenland is sold to the US, rising to 25% on June 1. Economists expect some negotiation and potential delay but warn the tariffs could shave 0.2 percentage points off European GDP, with the UK possibly facing up to 0.75% GDP loss. The European Union is preparing retaliatory measures, while analysts say geopolitical tensions are driving gold and silver to new highs. The situation remains closely watched by investors, as long-term risks could escalate if diplomatic talks fail.