HONG KONG: Gold and silver hit record highs on Monday (Jan 19) while most equity markets fell after United States President Donald Trump revived trade war fears by threatening several European nations with tariffs over their opposition to the US buying Greenland.
Trump has fanned already-rising geopolitical tensions this month by insisting that Washington would take control of the North Atlantic island, citing national security needs.
And on Saturday, after talks failed to resolve “fundamental disagreement” over the Danish autonomous territory, he announced he would hit eight countries with fresh levies over their refusal to submit to his demands.
He said he would impose 10 per cent tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland from Feb 1 – rising to 25 per cent from Jun 1 – if they did not agree to the takeover.
The announcement drew an immediate response, with a joint statement from the countries saying: “Tariff threats undermine transatlantic relations and risk a dangerous downward spiral.”
The move also threatened a trade deal signed between the US and European Union last year, with German Foreign Minister Johann Wadephul telling ARD television: “I don’t believe that this agreement is possible in the current situation.”