Global markets experienced significant volatility following Trump's announcement of punitive tariffs targeting European countries over Greenland's territorial sovereignty. The tariffs, set to begin at 10% on February 1 and increase to 25% by June 1, aim to pressure Denmark and other European nations into selling Greenland to the U.S. or face economic consequences. This geopolitical tension has led to a 1.05% drop in the Hong Kong stock market and declines in Asian markets, while safe-haven assets like gold surged 2% to historic highs.
The cryptocurrency market also faced turmoil, with Bitcoin plummeting by $4,000, marking a 3.6% daily decline. The tariffs have disrupted global trade and liquidity, causing a contraction in offshore U.S. dollar availability and prompting investors to sell volatile crypto assets to cover margin calls. As the EU prepares potential countermeasures, the market remains on edge, with investors closely monitoring developments for signs of resolution or further escalation.
Trump's Greenland Tariff Threat Triggers Global Market Volatility
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