Wall Street slumps after Trump threatens 8 NATO members with punishing tariffs over Greenland

The Nasdaq composite slumped 1.5%.

Stocks are falling on Wall Street after President Donald Trump threatened to hit eight NATO members with new tariffs as tensions escalate over his attempts to assert American control over Greenland. The S&P 500 sank 1.3% in early trading Tuesday. The Dow Jones Industrial Average dropped 642 points, or 1.3%. The Nasdaq composite slumped 1.5%. Trump said Saturday that he would charge a 10% import tax starting in February on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. European markets also fell and Treasury yields moved higher in the bond market.

Trump said Saturday that he would charge a 10% import tax starting in February on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland because of their opposition to Trump’s desire to make Greenland part of the United States.

The annual combined imports from European Union nations are greater than those from the top two biggest individual importers into the U.S., Mexico and China.

Trump linked his aggressive stance on Greenland to last year’s decision not to award him the Nobel Peace Prize, telling Norway’s prime minister that he no longer felt “an obligation to think purely of Peace,” in a text message released Monday.