STMicroelectronics stock slides nearly 5% on Trump Greenland tariff threat; what to watch next

STMicroelectronics stock slides nearly 5% on Trump Greenland tariff threat; what to watch next

Paris, January 20, 2026, 02:13 (CET) — The market has closed.

STMicroelectronics shares dropped 4.8% on Monday, closing at 23.14 euros on Euronext Paris. (MarketScreener)

The drop followed a wider selloff across European stocks after U.S. President Donald Trump warned of fresh tariffs on eight European nations unless the U.S. gets the go-ahead to purchase Greenland. European tech stocks fell 2.9%, while the euro zone volatility index — which measures anticipated market turbulence — surged to its highest level since November. (Reuters)

Shares of U.S.-listed STMicroelectronics (STM) closed at $28.03 on Friday. With the U.S. markets closed Monday for Martin Luther King Jr. Day, no trading took place, putting Tuesday’s session in focus as the next gauge of investor confidence. (Reuters)

On Saturday, Trump said he would slap an additional 10% tariff starting Feb. 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain. That tariff would jump to 25% by June 1 unless the U.S. gets the green light to buy Greenland. The move also threatens to undermine the limited trade agreements Washington reached with Britain in May and the European Union in July. (Reuters)

EU ambassadors agreed Sunday to ramp up efforts to push back against Trump, while preparing retaliation, according to EU diplomats. An emergency summit is scheduled for Thursday, where leaders will consider options like reactivating a 93 billion euro tariff package on U.S. imports or using the bloc’s unused Anti-Coercion Instrument—a mechanism that can restrict access to public tenders, investment, or services. The European Parliament is also expected to freeze progress on the EU-U.S. trade deal; a vote set for Jan. 26-27 is now uncertain. (Reuters)

Markets are gearing up for another round of “risk-off” moves — investors pulling back from equities and flocking to safer bets — as the dispute continues. Tony Sycamore, market analyst at IG, said, “Markets at this point are expected to reopen this week in ‘risk-off’ mode.” Carsten Nickel, deputy director of research at Teneo, added that deals with the U.S. administration “hardly provide certainty over the longer term.” (Reuters)

European chip stocks dropped sharply. ASML slid 3.3%, while Infineon dropped 3% on Monday, according to Barron’s. (Barron’s)

The tariff threat remains political posturing rather than firm policy, and investors are divided on its potential impact. Some expect a possible easing of tensions, but an upcoming U.S. Supreme Court decision on the legality of Trump’s tariffs introduces fresh uncertainty, Reuters reported. (Reuters)

STMicroelectronics plans to release its Q4 and full-year 2025 earnings on Jan. 29, ahead of the European market open. The chipmaker will follow up with a conference call at 9:30 a.m. CET, the company announced. (St)

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