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.
U.S. President Donald Trump's threats to make the Strait of Hormuz part of U.S. territory have been mocked by Iran's Deputy Foreign Ministe...
Five years ago today, Taliban fighters entered Kabul, completing a rapid takeover of Afghanistan as the former government collapsed....
For fishermen along Pakistan’s southwestern coast, the consequences of the U.S.-Iran conflict are being felt far from the battlefield....
Hundreds of flights have been cancelled or rerouted at Catania Airport over the past week as ash from Mount Etna’s ongoing eruption continues to disrupt air travel in Sicily.
Wildfires across England and Wales have reached their highest level on record, according to the National Fire Chiefs Council, as firefighters struggle to contain outbreaks following a spell of extreme heat.
The U.S. will impose unprecedented measures on Iran in order to economically isolate the country, U.S. Treasury Secretary Scott Bessent has said.
U.S. President Donald Trump's threats to make the Strait of Hormuz part of U.S. territory have been mocked by Iran's Deputy Foreign Minister, Kazem Gharibabadi, who said the sea passage "cannot be seized by tweet."
At least 47 people have been killed after a magnitude 7.7 earthquake struck off eastern Indonesia early on Saturday, triggering small tsunami waves and dozens of aftershocks, officials say.
Online fast-fashion platform Shein lost a London copyright lawsuit against rival Temu on Thursday over photographs used to promote some products.
Norway’s $2.3 trillion sovereign wealth fund has revealed a 0.05 per cent stake in SpaceX worth $1.22 billion, marking its first reported holding in Elon Musk’s space company.
U.S. data analytics firm Palantir Technologies has reported a 93 per cent year-on-year jump in second-quarter revenue, even as the company faces continued criticism over its work with Israel's military and allegations linking its technology to the war in Gaza.a.
Rising trade across the Caspian Sea is strengthening Georgia’s role as a logistics hub and could help the country develop higher-value industries, according to the Asian Development Bank (ADB).
Ford raised its full-year earnings forecast after reporting stronger-than-expected second-quarter adjusted profit, as resilient demand for its vehicles and operational improvements helped offset tariff-related costs.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment