Gold and silver surged to record highs after U.S. President Donald Trump escalated tensions with Europe by threatening new tariffs linked to his push to acquire Greenland, stoking fears of a damaging transatlantic trade war.

Trump said the United States would impose tariffs on eight European countries — including France, Germany and the United Kingdom — that have opposed his plan to bring Greenland under U.S. control. Under the proposal, a 10% levy would take effect on Feb.1 and rise to 25% in June. The announcement triggered a rush into safe-haven assets, lifting precious metals sharply.

European governments reacted with alarm. EU leaders are expected to hold emergency talks in the coming days to assess possible countermeasures. According to people familiar with the discussions, member states are weighing retaliatory tariffs on up to €93billion($108billion) worth of U.S. goods.

French President Emmanuel Macron may also push for the activation of the European Union’s Anti-Coercion Instrument, Bloomberg reported. The ACI is the bloc’s most powerful trade-defense mechanism, enabling Brussels to deploy a wide range of retaliatory steps in response to what it deems coercive economic actions.

Market participants said the confrontation has intensified broader concerns over global trade and geopolitical stability. “Geopolitical risks keep heating up,” said Kyle Rodda, an analyst at Capital.com in Melbourne. “Fresh trade uncertainty undermines growth prospects, and U.S. foreign policy is eroding trust in the dollar. It’s a perfect mix for gold and silver.”

The rally in precious metals reflects growing investor unease that a dispute over Greenland could spill into a wider trade conflict between the U.S. and Europe, further unsettling global markets.