London shares experienced a downturn on Monday as U.S. President Donald Trump issued a stark warning: allow the acquisition of Greenland or face tariffs. This proclamation targeted Britain and seven other European nations, sending ripples of unease through global markets and undermining recent international trade agreements.
The FTSE 100 index saw a 0.6% drop by mid-morning, while the mid-cap index fell by 0.9%, marking the worst single-day decline since November. Trump announced an additional 10% levy on imports from several European countries, escalating to 25% by June if no Greenland deal materializes. The markets’ unease echoed across trading floors worldwide.
European Union states condemned the threats as blackmail, with France meeting them with potential economic reprisals. Meanwhile, British Prime Minister Keir Starmer called for calm dialogue. The feared tariffs loomed over trade deals executed earlier this year between Washington and Europe, already criticized for disproportionately benefiting the U.S. London saw widespread losses in banking and healthcare stocks, while retail giants like Burberry took notable hits. In contrast, precious metal miners and defense stocks rose amid the uncertainty.