Trump’s Tariff Threats Hit European Markets From Cars To Credit

European markets fell sharply and credit risk rose after Donald Trump threatened new tariffs on European countries over Greenland, reigniting fears of a US–Europe trade war. Stocks most exposed to the US, such as automakers and luxury firms, led losses, while bond markets and safe-haven assets reflected heightened uncertainty and reduced risk appetite. Although many investors expect the threat to be negotiated away, analysts warn that sustained escalation could hit European growth, earnings, and market confidence.