How Trump's Greenland tariffs could impact gold, silver prices
What's the story
US President Donald Trump has threatened several NATO countries with tariffs of up to 25% in his quest to acquire Greenland. The countries targeted by these threats include Denmark, Sweden, Norway, France, Germany, the United Kingdom (UK), the Netherlands, and Finland. Starting February 1, 2026, a 10% tariff will be imposed on these nations which will rise to 25% from June 1, 2026.
Market impact
Trump's tariffs could fuel gold and silver prices
Market experts believe that Trump's tariffs will escalate geopolitical tensions and global uncertainty, possibly leading to a spike in gold and silver prices. Seema Srivastava, Senior Research Analyst at SMC Global Securities, said the tariff announcement is likely to push up precious metal prices as investors flock toward safe-haven assets amid rising trade tensions.
Market volatility
Indian stock market's mixed response
The tariffs could have a mixed impact on the Indian stock market. A weaker US dollar might make Indian exports more competitive, possibly benefiting sectors like IT and textiles. However, increased global trade tensions may lead to market volatility and negatively impact investor sentiment. Srivastava noted that key sectors such as pharmaceuticals, textiles, gems and jewelry, steel and metals, automobiles, and solar equipment may be affected by these developments.
Trade agreement
Trump's tariffs could fuel FTA negotiations
Despite the potential for short-term fluctuations in the Indian stock market due to Trump's tariffs, some experts view this as a positive long-term development. Sandeep Pandey, the co-founder of Basav Capital, said these tariffs are likely to accelerate Free Trade Agreement (FTA) negotiations between India and the European Union. He expects any volatility in the market tomorrow would be short-lived as it responds positively to strong Q3 results from banks like HDFC Bank, ICICI Bank, RBL Bank, and Yes Bank.