US futures sink after Trump warns of higher tariffs for 8 countries over Greenland issue

BANGKOK (AP) — U.S. stock futures skidded Monday after U.S. President Donald Trump threatened to slap a 10% extra tariff on imports from eight European countries due to their opposition to his desire to take control of Greenland.

The European countries targeted by Trump blasted the move, saying his threats “undermine transatlantic relations and risk a dangerous downward spiral.” The unusually strong joint statement from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland was the most forceful rebuke from the European allies since he returned to the White House almost a year ago.

The future for the S&P 500 fell 0.8%, while that for the Dow Jones Industrial Average was down 0.7%.

Trump’s moves are testing the strategic alignment and institutional trust underlying support from Europe, the largest trading partner and provider of financing to the United States, Stephen Innes of SPI Asset Management said in a commentary.

“In a world where geopolitical cohesion within the Western alliance is no longer taken for granted, the willingness to recycle capital indefinitely into U.S. assets becomes less automatic. This is not a short-term liquidation story. It is a slow rebalancing story, and those are far more consequential,” Innes said.

In Asia, shares were mixed after China reported that its economy expanded at a 5% annual pace in 2025, though it slowed in the last quarter. Oil prices edged higher. Strong exports, despite Trump’s higher tariffs on imports from China, helped to offset relatively weak domestic demand.

Hong Kong’s Hang Seng index lost 0.9% to 26,614.76. The Shanghai Composite index gained 0.3% to 4,113.86.

In Tokyo, the Nikkei 225 declined 0.8% to 53,523.92. Japanese Prime Minister Sanae Takaichi was due to hold a news conference later Monday as she prepares to dissolve the parliament for a snap election next month.

Elsewhere in Asia, South Korea’s Kospi jumped 1.4% to 4,906.58, pushing further into record territory on strong gains for tech-related companies. Computer chip maker SK Hynix climbed 1.9%.

Taiwan’s Taiex added 0.7%, while the Sensex in India fell 0.6%.

On Friday, stocks edged lower on Wall Street as the first week of corporate earnings season ended with markets trading near record levels.

The S&P 500 fell 0.1% and the Dow industrials lost 0.2%. The Nasdaq composite shed 0.1%. They all notched weekly losses, while smaller company stocks fared better. The Russell 2000 eked out a 0.1% gain.

Technology stocks were the strongest forces behind the market’s moves throughout most of the day. Several big technology stocks made strong gains and helped offset losses elsewhere.

Earnings updates might give investors a better sense of how consumers are spending their money and how businesses are faring with persisting inflation and higher tariffs. Results from the technology sector are being scrutinized by investors trying to figure out whether the high stock prices fueled by the craze around artificial intelligence are justified.

This week will bring a broader mix of earnings from airlines, industrial companies, and technology companies. United Airlines, 3M, and Intel are all scheduled to release their quarterly earnings results.

The U.S. central bank will get another update on inflation this week with the government’s release of the personal consumption expenditures price index, or PCE. It is the Federal Reserve’s preferred measure for inflation.

The Fed’s next policy meeting is in two weeks, when it is expected to keep its current benchmark interest rate as it strives to balance a slowing jobs market with stubbornly high inflation, which remains above the Fed’s 2% goal.

In other dealings early Monday, U.S. benchmark crude oil slipped 11 cents to $59.23 per barrel. It has settled after a spate of volatility during widespread protests in Iran against that country’s leadership.

Brent crude, the international standard, gave up 13 cents to $64.00 a barrel.

The price of gold resumed its upward climb, gaining 1.7%, while the price of silver jumped 5.2%.

The U.S. dollar slipped to 157.87 Japanese yen from 157.93 yen. The euro rose to $1.1631 from $1.1581.