From NATO to NSE: Trump’s Greenland Tariffs Send Ripples Across Indian Markets

Updated: January 18, 2026 01:30

Image Source: Outlook Business

US President Donald Trump’s threat of tariffs on NATO countries over Greenland has rattled global markets. Gold and silver are expected to open higher amid geopolitical uncertainty, while Indian equities may see volatility. Analysts suggest the move could indirectly benefit India by accelerating free trade talks with the EU.

Global financial markets are bracing for turbulence after President Donald Trump threatened tariffs on NATO allies to pressure Denmark into ceding control of Greenland. The announcement, made over the weekend, has sparked fresh concerns about trade wars, geopolitical instability, and their cascading effects on commodities and equities worldwide.

Key Highlights

Tariff Threat: Trump has warned of 10% import duties from February 1, 2026, on countries including Denmark, Norway, Sweden, France, Germany, the UK, Netherlands, and Finland. If no agreement is reached, the tariffs could rise to 25% by June 1, 2026.
Gold & Silver Outlook: Analysts expect gap-up openings in bullion markets, as investors flock to safe-haven assets amid heightened uncertainty. Gold and silver prices are likely to surge in early trading.
Indian Stock Market Impact: The Indian equity market may open volatile, with sectors linked to exports facing pressure. However, experts note that the development could strengthen India’s position in FTA negotiations with the EU, potentially offering long-term benefits.
Global Trade Concerns: The move escalates Trump’s long-standing ambition to acquire Greenland, but it risks triggering a new trade war with traditional US allies.

Why It Matters

For Commodities: Gold and silver often act as shock absorbers during geopolitical crises, and their upward trajectory signals investor anxiety.
For India: While short-term volatility is expected, India could leverage the situation to push for favorable trade terms with Europe, especially in sectors like IT, pharmaceuticals, and textiles.
For Global Stability: The tariffs highlight how political ambitions can disrupt economic equilibrium, underscoring the interconnectedness of modern markets.

Broader Context

This episode adds to a series of trade tensions under Trump’s presidency, echoing earlier disputes with China. For India, the challenge lies in navigating immediate market volatility while capitalizing on potential diplomatic openings. Investors are advised to watch bullion trends closely and brace for swings in equities until clarity emerges.

Sources: Livemint (livemint.com in Bing) , MSN Money , Money9

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