In the absence of the Supreme Court issuing its ruling on the legality of tariffs, President Trump imposed 10%-25% tariffs on NATO members.
The United Kingdom, which imports more than it exports from the U.S., Denmark, Norway, Sweden, France, Finland, Germany, and the Netherlands, all face 10% in tariffs starting February 1. This rises to 25% on June 1. This is in response to NATO sending troops to Greenland. The President wants the U.S. to reach a deal on the “complete and total purchase” of Greenland.
Investors may take advantage of the panic that this will cause. Greenland has rare earth elements, which the U.S. wants if it is to cut its dependence on China. The tension should give MP Materials (MP) a lift. It might also lift metal mining firms. Gold (GLD) could continue to rise, which would help Barrick (B) and Newmont Mining (NEM) trade higher.
Silver (SLV), which is already at its highs, might break out to a fresh new high. Copper firms like Freeport-McMoRan (FCX) might bounce back after the rally in shares lost momentum last week.
Investors should also consider buying European defense firms. The countries will need to increase their spending on military equipment. That would help Dassault Systems (DSY).
