Global markets are rattled after U.S. President Donald Trump threatened new tariffs on eight European countries over Greenland, sending the euro to a seven-week low and raising concerns about renewed transatlantic trade tensions.
Trump announced that a 10% import tariff would hit goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain from 1 February, rising to 25% from 1 June unless the U.S. is allowed to buy Greenland.
Major European Union states condemned the threats as blackmail. France is pushing to activate the bloc’s Anti-Coercion Instrument, which could limit U.S. access to public tenders, investments, or trade in services.
As Asian markets opened, the euro fell 0.2% to $1.1572, its lowest since November, while sterling dipped and the yen strengthened against the dollar.
"Hopes that the tariff situation has calmed down for this year have been dashed," said Berenberg chief economist Holger Schmieding.
Capital Economics estimates a 10% tariff could reduce UK and German GDP by 0.1%, while a 25% tariff might shave 0.2–0.3% off output. European stocks remain near record highs, with defence shares up nearly 15% this month amid rising geopolitical tensions.
Safe-haven gold stayed near record highs, while bitcoin remained stable at around $95,330. Analysts warned that escalation could pressure the dollar and global tech valuations if investors repatriate capital to Europe.
"This is more a weaponization of capital than trade flows, and it could be highly disruptive," said Deutsche Bank FX chief George Saravelos.
Trump’s move comes as the EU signs a free trade deal with Mercosur and as other global hot spots, including Iran and U.S. Fed tensions, add uncertainty to markets.
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Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
U.S. and Iranian officials said they had agreed on a framework to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz, a preliminary pact that sent oil prices falling but leaves the fate of Iran's nuclear program to further negotiations.
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