Following U.S. President Trump's statements about new 10% tariffs for eight European countries due to Greenland, gold and silver prices surged sharply. The price of gold rose to $4,690, DW reports.
Global prices for gold and silver reached new highs following new statements from U.S. President Donald Trump regarding the imposition of 10% tariffs on Germany and seven other European countries due to their stance on Greenland. On Monday morning, January 19, after the start of the trading week in Asian stock markets, the price of gold, a key asset during times of turmoil, peaked at $4,690.59, while silver reached $94.12.
At the same time, most stock markets fell amid new concerns about a potential trade war. Japan's Nikkei dropped by 1.4%, while the broad MSCI index of Asia-Pacific stocks outside Japan decreased by 0.3%. The dollar fell against the yen and the Swiss franc, while the euro and the British pound rose, and oil prices remained stable.
Trump: New Tariffs to Take Effect on February 1
On January 17, Donald Trump announced that a 10% tariff on goods supplied to the United States from Germany, Denmark, the United Kingdom, the Netherlands, Norway, Finland, France, and Sweden would take effect on February 1. According to the U.S. president, the tariffs will increase to 25% starting June 1. The tariffs will be imposed in addition to those already in place, Reuters clarified. The fees "will be collected until a deal for the complete and final purchase of Greenland is reached," Trump stated, adding that the U.S. "has been trying to make this deal for over 150 years," but Denmark has refused.
The U.S. president has repeatedly expressed a desire to gain control over the island, first voicing this idea in 2019 during his first presidential term. During talks in Washington on January 14, Danish Foreign Minister Lars Løkke Rasmussen and Greenland's Foreign Minister Vivian Motzfeldt were unable to reach an agreement on the status of the Arctic island. After the talks, Rasmussen stated that the countries hold "fundamentally differing positions" on Greenland. Motzfeldt indicated that she would like to strengthen cooperation with the White House but did not want Greenland to belong to the U.S.
On January 15, the countries subject to Trump's announced tariffs stated that they would send their military to Greenland as part of an intelligence mission to bolster security in the region and assist Denmark in preparing for large military exercises at the end of 2026. A group of 15 Bundeswehr soldiers already left Greenland on January 18, the day after Trump's threats to impose tariffs against Germany for supporting Denmark in the territorial dispute.
