US stocks and the dollar dropped after Donald Trump said there was “no going back” on the campaign to take control of Greenland even as he offered talks over an issue that has put Washington and its European allies at loggerheads.
Wall Street’s S&P 500 share index slid 2.1 per cent on Tuesday, its worst day since October, as escalating transatlantic tensions and threats of a trade war unnerved investors. The dollar also dropped 0.9 per cent against a basket of six peers, while US government debt fell sharply.
The US president and European leaders traded criticism over his grab for the Arctic island, with France’s President Emmanuel Macron taking aim at Trump’s “useless aggressivity” and Belgian premier Bart De Wever urging Europeans to “call his bluff now”.