The Economic Times

How can the EU respond to Trump's Greenland tariffs? Dow Jones drops as Trumps EU tariffs escalate

The Dow Jones Industrial Average plummeted over 600 points Tuesday as President Trump escalated trade tensions with Europe. Markets reacted sharply to the new 10% tariff on eight European nations, set to begin February 1, 2026. Trump warned these duties will jump to 25% on June 1 unless a deal is reached for the U.S. to purchase Greenland. The European Union, led by Ursula von der Leyen, is weighing retaliation. Proposed responses include $108 billion in counter-tariffs and tougher trade measures.