US stock futures fell sharply earlier this week after US President Donald Trump threatened to impose trade tariffs on eight European countries.
The drastic step was taken by Trump to take over Greenland from the European Union (EU).
The 10% trade tariff will be implemented on goods from Germany, the United Kingdom (UK), Denmark, Norway, Sweden, France, the Netherlands and Finland effective February 1.
However, the rate will increase to 25% in June if no agreement is reached between the US and the EU regarding the Greenland issue.
In terms of market performance, the Dow Jones index fell 0.17% to 83.11 points, the S&P 500 plunged 4.46% to 4.46 points and the Nasdaq Composite declined 0.06% to 14.63 points.
Meanwhile, European leaders are now considering stopping the approval of the trade agreement signed last year.
French President Emmanuel Macron is reported to be likely to activate the EU's anti-coercion instruments in response.
Meanwhile, investors this week will also be focusing on earnings reports from giant companies such as Netflix, Intel and Visa for a clearer picture of the direction of the economy.
