Global stock markets are set to fall on Monday after US President Donald Trump threatened new tariffs on goods from eight European countries. Starting February 1, Trump plans a 10% tariff, rising to 25% by June, on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. This threat is linked to his ambition to buy Greenland. European markets are expected to drop, with the London Stock Exchange’s FTSE 100 predicted to fall by 0.9%, and Wall Street’s Dow Jones by 0.5% on Tuesday. Precious metals like gold and silver are rising, with gold nearing record highs. Tony Sycamore, market analyst at IG, said, "This latest flashpoint has heightened concerns over a potential unravelling of Nato alliances and the disruption of last year’s trade agreements with several European nations, driving risk-off sentiment in stocks and boosting safe-haven demand for gold and silver." European leaders including UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen criticized the tariffs, warning they threaten the NATO alliance. Susannah Streeter of Wealth Club called the policy "a migraine-inducing development" and said companies would struggle with higher costs that may reach American consumers. European business groups have urged the EU to respond firmly. The German engineering association, VDMA, suggested using an "anti-coercion instrument" against the US. Its president, Bertram Kawlath, warned that "if the EU gives in here, it will only encourage the US president to make the next ludicrous demand." Hildegard Müller, head of Germany’s auto industry group, warned the tariffs would have "enormous" costs. William Bain from British Chambers of Commerce called the move "more bad news for UK exporters," urging fast implementation of the frozen UK-US trade deal to ease tensions. The fresh tariffs have triggered fear of a new trade war with Europe, rattling global markets and raising the stakes on diplomatic ties.