Markets plunge as investors worry over Greenland and tariffs

Global investors sparked a massive “sell America” push, amid a looming Greenland takeover threat and subsequent renewed tariff anxiety.

US markets sank on Tuesday, and also affected Europe’s Stoxx 600.

The Dow plummeted 871 points, or 1.76%, while the S&P and Nasdaq fell 2.06% and 2.39% respectively, erasing their gains for the year. The sell-off was accompanied by a significant 0.8% slide in the US dollar.

Meanwhile, safe-haven assets like gold and silver reached record highs.

Pushing the market down were Trump’s 10% tariffs on Denmark and seven other European nations, set to take effect on February 1. The duty could rise to 25% by June unless the US acquires Greenland. In response, the Danish pension fund announced plans to divest $100 million in US Treasuries by the end of January.

International factors, including a snap election in Japan, also affected the markets.

While some analysts hope for a de-escalation, others warn of the potential for European retaliation.

For now, investors are closely watching for the Supreme Court’s ruling on the legality of the President’s tariff powers.