Gold jumped to record high and stocks fell on Monday after Donald Trump’s pursuit of Greenland threatened to reignite a trade war with Europe and left transatlantic relations facing their gravest crisis in years.

The prime minister also tells the US president that security in the Arctic remains a priority "for all Nato allies".

European shares mostly fell and U.S. stock futures skidded Monday after U.S. President Donald Trump threatened to slap a 10% extra tariff on imports from eight European countries because they oppose having America take control of Greenland.

President Donald Trump announced that the NATO countries who have sent small contingents of troops to Greenland will be charged a 10% tariff on all goods.

Trump wants the "complete and total purchase" of the Danish territory - in his latest comments, he says: "Now it is time, and it will be done!"

Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland are casting a united front after Trump threatens tariffs.

The dollar slid on Monday after Donald Trump threatened European allies with tariffs over his campaign to take control of Greenland, as the return of trade turmoil reawakened global investors’ concerns about their massive exposure to US assets.