Noor Trends News, Technical Analysis, Educational Tools and Recommendations
European defense shares climbed on Monday as investors reacted to fresh geopolitical tensions sparked by U.S. President Donald Trump’s threat to impose new tariffs on several European countries unless Washington is allowed to buy Greenland.
Shares of Italy’s Leonardo, Germany’s Rheinmetall and Renk, Britain’s BAE Systems, and France’s Thales all traded higher in mid-morning sessions, as markets priced in rising security risks and the prospect of increased defense spending across the continent.
Over the weekend, Trump said the United States would impose 10% tariffs on eight European nations Denmark, Sweden, France, Germany, the Netherlands, Finland, Norway, and the United Kingdom unless they agree to a deal over Greenland. He added that the levies would rise to 25% by June if no agreement is reached.
Trump framed the demand as a national security necessity, but European leaders have rejected the idea, with several describing it as political and economic blackmail.
European Union officials are expected to meet later this week to coordinate a response. Reports suggest Brussels is preparing a range of countermeasures, including a potential €93 billion package of tariffs on U.S. imports. Another option under discussion is the EU’s Anti Coercion Tool, which could restrict U.S. access to European investment, banking activity, and trade in services.
An emergency summit is scheduled for Thursday in Brussels, where leaders are set to debate both the trade fallout and the broader geopolitical implications.
Analysts say the renewed uncertainty around Trump’s trade strategy, a recurring theme throughout 2025, is once again intensifying. With the standoff raising questions about the future of transatlantic relations and even the cohesion of NATO, investors have begun rotating toward European defense firms seen as direct beneficiaries of a more fragile security environment.
