European Markets Set to Open Lower as Trump Tariff Threats Deepen Trade Uncertainty

European stock markets are expected to open in negative territory on Tuesday as renewed concerns over trade tariffs weigh on investor sentiment across the region. Major benchmarks in the U.K., Germany, and France are forecast to slip modestly at the open, reflecting caution among traders amid escalating geopolitical tensions.

According to data from IG, the U.K.’s FTSE, Germany’s DAX, and France’s CAC 40 are all projected to open around 0.2% lower, while Italy’s FTSE MIB is seen declining by approximately 0.26%. The subdued outlook follows losses recorded on Monday, when regional markets retreated in response to fresh tariff threats from the United States.

Market anxiety intensified after U.S. President Donald Trump warned that European countries could face higher trade tariffs if they oppose his proposal for Washington to acquire Greenland, a semi-autonomous territory under Denmark. Trump announced over the weekend that tariffs would begin at 10% on February 1 and rise to as much as 25% by June 1 if no agreement is reached.

The proposed measures would affect Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland. European leaders have pushed back strongly against the threat, calling for diplomatic engagement and dialogue rather than economic retaliation, as concerns grow over the potential impact on trade and growth.

Attention on Tuesday will shift to the World Economic Forum in Davos, Switzerland, where global political and business leaders are gathering amid heightened uncertainty. Key speeches are expected from European Commission President Ursula von der Leyen, Chinese Vice Premier He Lifeng, and French President Emmanuel Macron, with Trump scheduled to address the forum on Wednesday. No major corporate earnings or economic data releases are due in Europe, leaving markets largely driven by political developments.

source: cnbc