Trump U-Turn Sparks Surge in Danish Stocks

Steven Højlund

Writer

January 22, 2026
11:34 am

Danish and European stocks opened with significant gains Tuesday morning after U.S. President Donald Trump withdrew his tariff threats against Denmark and seven other European countries. The Danish C25 index rose approximately two percent at opening, reflecting what analysts describe as a collective sigh of relief from investors.

Trump Reverses Course on Tariff Threats

The past few days have brought considerable turbulence to stock markets after Trump threatened Denmark and seven other European nations with additional tariffs. His demand was for these countries to send soldiers to Greenland. However, on Monday evening, Trump reversed his position and removed the threats.

The impact on the market was immediate. The Danish C25 index for the largest and most traded stocks opened with gains of around two percent. According to Jyske Bank chief strategist Ib Fredslund Madsen, this represents a clear relief rally after Trump withdrew his most recent tariff threats.

DR’s business correspondent Jakob Ussing explains that the market gains stem from the resolution of uncertainties that have dominated trading in recent days. Markets already reacted positively Monday when Trump stated he would not use force to take over Greenland. After markets closed Monday, Trump also removed his tariff threats, providing additional momentum to stocks Tuesday.

Markets Recover Most Losses

Trump’s weekend tariff threats against Denmark and seven other European countries initially sent Danish stocks tumbling 2.7 percent on Monday. Tuesday’s rally allowed stocks to recover a substantial portion of those losses.

Interestingly, recent market swings have been more moderate compared to similar episodes last year. Despite falling throughout the week, the declines haven’t matched those seen in spring when Trump threatened the entire world with tariffs. Jakob Ussing notes that the stock market maintains intense focus on whether Trump’s threats will escalate into an actual trade war capable of dragging the global economy into lower gear.

Learning from last year’s developments, the market has begun responding more cautiously to Trump’s announcements. This measured approach reflects investors’ growing familiarity with the president’s negotiating tactics and communication style.

Classic Trump Playbook

Philip Jagd, equity chief at Sampension, characterizes the market developments as a classic response to Trump’s maneuvering. On Wednesday evening, Trump delivered what Jagd calls a “Trump classic” by canceling the Greenland-related tariffs he announced over the weekend.

The threat of an escalating trade war appears to be on standby for now, which represents good news for investors who are sending stocks higher in response. However, Jagd cautions that declaring the crisis over would be premature.

Trump’s first year in the White House demonstrated his unpredictability. Anything can happen, and investors must expect this pattern to continue going forward. This uncertainty factor continues to influence trading strategies and risk assessments across financial markets.

European Markets Follow Similar Pattern

The positive momentum isn’t limited to Denmark. Most European stock indices opened with gains of approximately one percent Tuesday morning. This broad-based rally suggests that investor relief extends across the continent.

The coordinated response highlights how interconnected European markets have become and how regional developments can influence trading patterns across multiple countries simultaneously. As a result, what affects Danish stocks often creates ripple effects throughout European financial markets.

Despite the current optimism, market analysts remain watchful. The volatility of recent weeks serves as a reminder that geopolitical tensions can quickly impact financial markets. Investors continue monitoring Trump’s statements and policy decisions closely, knowing that conditions can change rapidly.

Without a doubt, the coming weeks will test whether this market recovery has staying power or whether new uncertainties will emerge to challenge investor confidence once again.