STMicroelectronics stock slides nearly 5% on Trump Greenland tariff threat; what to watch next
20 January 2026

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

Paris, January 20, 2026, 02:13 (CET) — Trading has ended for the day.

Shares of STMicroelectronics fell 4.8% on Monday, ending the session at 23.14 euros on Euronext Paris.

Shares fell amid a broader European selloff sparked by U.S. President Donald Trump’s threat to impose new tariffs on eight European countries unless the U.S. is allowed to buy Greenland. European tech stocks dropped 2.9%, and the euro zone volatility index, tracking expected market swings, jumped to its highest point since last November.

Shares of U.S.-listed STMicroelectronics (STM) ended Friday at $28.03. Since the U.S. markets were closed Monday for Martin Luther King Jr. Day, no trades happened then, making Tuesday’s session the key moment to watch for investor sentiment.

On Saturday, Trump announced he would impose an extra 10% tariff starting Feb. 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain. That rate would rise to 25% by June 1 unless the U.S. secures approval to purchase Greenland. The move also puts at risk the limited trade deals Washington struck with Britain in May and the European Union in July.

EU ambassadors agreed Sunday to intensify efforts against Trump while gearing up for retaliation, EU diplomats said. An emergency summit is planned for Thursday, where leaders will weigh options like reactivating a 93 billion euro tariff package on U.S. imports or deploying the bloc’s unused Anti-Coercion Instrument—a tool that can limit access to public tenders, investment, or services. The European Parliament may also halt progress on the EU-U.S. trade deal; a vote scheduled for Jan. 26-27 is now in doubt.

Markets are bracing for another wave of “risk-off” moves — investors stepping back from equities and seeking safer havens — amid ongoing disputes. Tony Sycamore, market analyst at IG, noted, “Markets at this point are expected to reopen this week in ‘risk-off’ mode.” Carsten Nickel, deputy director of research at Teneo, warned that deals with the U.S. administration “hardly provide certainty over the longer term.” Reuters

European chip stocks took a hit Monday. ASML fell 3.3%, and Infineon lost 3%, Barron’s reported.

The tariff threat still looks like political posturing more than concrete policy, leaving investors split on what it might mean. Some are hopeful tensions could ease. But a pending U.S. Supreme Court ruling on the legality of Trump’s tariffs adds a new layer of uncertainty, Reuters reported.

STMicroelectronics is set to report its Q4 and full-year 2025 results on Jan. 29, before European markets open. The chipmaker will host a conference call at 9:30 a.m. CET, the company confirmed.

Khadija Saeed

Khadija Saeed is a financial markets reporter at TS2.tech, specializing in stocks, technology and emerging industries. She studied economics and finance at the London School of Economics and previously worked in market research before moving into financial journalism. Her coverage focuses on the companies, innovations and economic trends influencing global investors. Follow Khadija Saeed on Google News.

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