# Trump maintains pressure on UK and other European allies over Greenland

By Emma Wall — 2026-01-20

Emma Wall, chief investment strategist at Hargreaves Lansdown, said: “It is difficult to comprehend that we are still in January – news flow and market reaction has made this one long year-to-date, averaging weekly market rotations.

“Yesterday, European markets universally fell, reacting to the news over the weekend that US President Donald Trump intended to implement 10 per cent additional import tariffs by February 1 on the eight countries that had – in his eyes – defied him by sending military support to Greenland.

“In the event a deal was not reached with these countries by June 1, the US President indicated this rate would rise to 25 per cent.

“Across Europe, sectors which export the most to the US saw big stock hits; auto companies including BMW, Mercedes and Volkswagen, luxury goods firms Kering and LVMH and pharmaceutical and medical equipment companies including Novo Nordisk and Roche were amongst the worst hit.

“Tomorrow, Trump takes the stage at the annual World Economic Forum in Davos, which we expect to cause additional market turmoil, given the current political stance.

“Navigating these choppy waters is difficult for investors – as we outlined in our 2026 market outlook, uncertainty and geopolitical domination over markets will be a mainstay of the next 12 months, and beyond.

“Investors should stick to the boring basics in these environments. Diversify risk across asset classes, geographies and styles, focus on the long term and don’t be tempted to speculate.

“If you are allocating new money as we approach the final quarter of the tax year, consider companies which have economic resilience – little to no debt, consumer staples, and recurring revenues.”

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