Trump's Greenland tariffs shake markets; gold, silver hit records
Asian equities stabilised Wednesday after a rough week, fuelled by US President Donald Trump's tariff threats linked to Greenland. Markets globally have been volatile after Trump on Saturday threatened up to 25% tariffs on European countries—including France, Germany, Britain, and Denmark—for opposing his takeover of Greenland. This prompted a warning of retaliation from French President Emmanuel Macron and EU chief Ursula von der Leyen, while US Treasury Secretary Scott Bessent warned such retaliation would be 'unwise'.
As a result, safe-haven precious metals hit fresh record highs: gold at $4,836.80 per ounce and silver at $95.89. Stocks fell across Asia on Wednesday (Tokyo, Sydney, Manila down) though Hong Kong and Shanghai rose. US futures advanced ahead of Trump's speech at the Davos World Economic Forum later today.
This directly affects Nigeria by increasing global trade uncertainty, which could raise import costs and pressure the naira. With Europe a key trade partner and the US a major oil market, any prolonged trade war could impact fuel prices, inflation, and business costs here. Traders are watching for how Europe responds to Trump's demands and whether his speech escalates tensions further.