New York: US and global markets fell sharply on Tuesday after President Donald Trump threatened new tariffs on eight NATO members amid rising tensions over his bid to bring Greenland under American control.

The S&P 500 dropped 1.3%, the Dow Jones Industrial Average fell 642 points (1.3%), and the Nasdaq composite slid 1.5% in early trading. European markets also declined, while Treasury yields rose.

Trump said he will impose a 10% import tax from February on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, accusing them of opposing his Greenland plan.

Also read: ‘Great Stupidity’: Trump slams UK pact to hand back Chagos Islands to Mauritius

Safe-haven demand surged. Gold climbed 3% to $4,733 an ounce, and silver jumped over 7% to $95.30, both at record highs.

Trump linked the dispute to last year’s Nobel Peace Prize decision, telling Norway’s Prime Minister Jonas Gahr Støre in a text message that he no longer felt “an obligation to think purely of Peace.”

Also read: Silver hits record on MCX as Trump’s Greenland tariff threat sparks US-EU trade fears

European leaders are weighing countermeasures, including retaliatory tariffs and possible use of the EU’s anti-coercion instrument.

Trump also warned of 200% tariffs on French Champagne and is expected to confront leaders at the World Economic Forum in Switzerland. Meanwhile, the US Supreme Court is due to rule on its tariff authority, a decision that could affect $200 billion in tariff revenue.

Major tech stocks, including Nvidia, Alphabet and Amazo,n fell, adding pressure on the Nasdaq. The dollar weakened against the yen, euro and Swiss franc, while Japan’s long-term bond yields hit record highs.