SOTS 2nd Hour: Tariff Threats & The Market Picture; Plus: LIVE from Davos (Citi CEO, Salesforce CEO, Micron CEO) 1/20/26

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Sara Eisen (1:02)

Good Tuesday morning and welcome to Squawk on the Street. I'm Sara Eisen, joining today from the World Economic Forum in Davos, Switzerland, along with David Faber as always, Mike Santoli today live from the New York Stock Exchange. We're following a number of breaking stories this hour, including an early sell off tied to President Trump's tariff threats around Greenland. That's what everybody's talking about here. And the key tariff decision in the Supreme Court that could come this hour will bring you the headlines as soon as we get them. Plus, we've got a great line up for you of guests from Davos, Switzerland, including Citigroup CEO, Jane Fraser, Salesforce CEO, Marc Benioff, Micron CEO, Sanjay Mehrohtra. For now, David, back over to you.

David Faber (1:40)

Okay. Yeah, Sara, we're going to start with tariffs, of course, that threat of a new round of levies because of Greenland, essentially, the fact that the president wants the US to own it, so to speak. We await a potential game changing tariff decision as well from the Supreme Court, and Eamon Jabbers has all of it for us from Washington, Eamon.

Eamon Javers (2:00)

Yeah, David, a lot at stake here. Just in the next couple of minutes, it's 10 a.m. on the East Coast, which means that we are in Supreme Court decision time. We're going to watch for the Supreme Court. We don't know exactly how many decisions, whether we're going to get the tariff decision. That is a possibility over the next couple of moments, so we're watching for that in real time. Meanwhile, we saw the social media post from the president over the weekend that roiled markets that led to the open that we're seeing now. Take a look at what the president posted on social media in part. This is a response by the president to European countries which put forces in Greenland over the weekend to protect it from a potential American military takeover. The president says he's going to put in on February 1st a 10% tariff on all goods from the countries that have sent troops to Greenland. On June 1st, he said that will increase to 25%. He said that tariff will be in place until a deal is reached to purchase Greenland. And here's what he said on social media in terms of explaining his reasoning for this. He says, we have subsidized Denmark and all of the countries of the European Union and others for many years by not charging them tariffs or any other form of remuneration. Now, after centuries, it is time for Denmark to give back. World peace is at stake, says the president over the weekend.

So, what the president is doing here is saying that if those European countries insist on putting troops in Greenland to protect it from a potential US military invasion, then he will impose these tariffs as of February 1st and then kicking into a higher level in June of this year. All of that said, David, it's important to put this in some context. We saw the president threatening tariffs last week. Remember, he threatened tariffs on trading partners of Iran, including, of course, China, which is a big one. That threat came on Monday. The president said a couple of times during the course of the week last week that those tariffs were in effect. However, we have not seen any tariffs noticed to the federal register over the course of the past week from his threat last week. So as far as we can tell, David, nobody is collecting those trading partner tariffs on Iran that the president threatened last week, even though he says those are in effect. Is that going to be the case with this threat? We just don't know. We'll wait and see, and we'll wait and see for that Supreme Court decision.

David Faber (4:20)

Right. And if recent history holds, we'll be talking to you soon about whether or not we're getting that decision. And if we do, of course, what it is. Eamon Javers, thank you.