Globex has reopened for trade for the (holiday impacted) week:ES (S&P 500 e-mini futures) gapped 0.8% lowerNQ (Nasdaq 100 e-mini futures) gapped lower by 1.1%US Fed Fund futures are up a couple of ticks As I am sure you know by know if you follow along with us here each Monday, early FX foreshadowed these moves:Monday open indicative forex prices, 19 Jan 2026. 'Risk' lower on Trump's latest trade warAs background to the moves ...Summary:EU races to block Trump’s Greenland-linked tariff threat€93bn retaliatory tariff package could snap back in FebruaryEmergency EU summit set for Thursday in BrusselsAnti-Coercion Instrument debated but support remains mixedTrade dispute rattles markets, revives volatility risksThe European Union is intensifying diplomatic efforts to head off a new transatlantic trade clash after U.S. President Donald Trump threatened sweeping tariffs on European allies over Greenland, while simultaneously preparing retaliation should talks fail.In Trump's own words:Starting on February 1st, 2026, all of the above mentioned Countries (Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland), will be charged a 10% Tariff on any and all goods sent to the United States of America. On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland.EU ambassadors meeting in Brussels on Sunday broadly agreed to step up engagement with Washington ahead of an emergency leaders’ summit on Thursday, even as contingency plans for countermeasures gained momentum. Trump wanting to buy Greenland is a move European leaders have described as coercive.The immediate focus is on a suspended package of retaliatory EU tariffs worth €93 billion on U.S. goods, which could automatically come back into force on February 6. The measures were frozen last August after a temporary trade understanding with Washington, but diplomats now say that deal is at risk of unravelling.EU leaders will also debate whether to activate the bloc’s never-used Anti-Coercion Instrument, which would allow Brussels to restrict U.S. access to public procurement, investment flows, financial services or digital markets. While some capitals are pushing for a tougher stance, EU sources say support for deploying the instrument remains mixed, with many preferring tariffs as an initial response.European Council President Antonio Costa said consultations showed strong unity behind Denmark and Greenland and a shared readiness to resist economic pressure, while keeping channels for dialogue open. Danish Prime Minister Mette Frederiksen said Europe “will not be blackmailed,” welcoming consistent backing from EU partners.Diplomacy is expected to continue on the sidelines of the World Economic Forum in Davos, where Trump is due to appear. Several EU leaders stressed that negotiations remain preferable to escalation, but warned that tariff threats risk triggering a damaging spiral for trade and markets. The dispute has already unsettled currencies, with investors bracing for renewed volatility if tensions intensify.As an aside, in energy markets, Nat Gas up almost 10% on the cold weather forecast models showing a cold snap. This article was written by Eamonn Sheridan at investinglive.com.