In a Truth Social post over the weekend, President Trump said he'll impose a 10% tariff on European NATO countries backing Denmark against his push to acquire Greenland. The tariff will start at 10% on Feb. 1, escalating to 25% by June 1 unless "a Deal is reached for the Complete and Total purchase of Greenland."

Trump wrote on Truth Social Saturday that the U.S. would implement a 10 percent tariff on goods from eight European countries amid a clash about Greenland's sovereignty.

The rhetoric on tariffs and Greenland has ratcheted up from there as Trump and his administration make their way to the World Economic Forum in Davos, Switzerland. Trump is expected to meet with top CEOs at the global confab and make a highly anticipated speech on Wednesday.

Prediction markets are pricing 40 percent odds of a Greenland takeover, driven by Arctic security, Starlink connectivity, Anduril defense systems, and shifting incentives.

Bailey said markets were less volatile than might have been expected but added policymakers must keep a close eye on developments.

Stock futures plummeted before trading early Tuesday morning as investors on Wall Street were shaken by President Trump’s threats to slap tariffs on several European nations as part of his campaign to acquire Greenland. Dow futures were down more than 600 points, falling 1.26% while S&P 500 futures tanked nearly 100 points.

Cryptocurrencies led risk assets lower on Tuesday, January 20 as concerns about escalating tariffs soured sentiment and provoked market turmoil.

The U.S. Treasury market’s selloff has room to deepen after President Donald Trump’s threat of tariffs on European countries that oppose his ambition to gain control of Greenland, according to a note Tuesday from Ian Lyngen,

Prediction markets show rising odds for a United States acquisition of Greenland as President Donald Trump renews interest in the territory.