Trump Slaps EU With 10% Tariffs Over Greenland Bid

President Donald Trump has announced sweeping tariffs against seven European nations, tying the economic pressure to his administration’s push for a complete acquisition of Greenland. The move marks step four in an escalating trade war, according to analysts who have tracked the administration’s tariff playbook for the past year.

The 10% duties target all goods shipped to the United States from Denmark, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. If negotiations over Greenland’s status remain unresolved by June 1, the rate will automatically rise to 25%. The penalties take effect February 1 and apply across every sector, from Danish pharmaceuticals to German automobiles.

EU leaders responded within hours. Officials in Brussels confirmed they will freeze approval of any new trade agreement with Washington while the tariffs remain in place. Lawmakers also convened an emergency session scheduled for today to coordinate a unified retaliation package. The rapid pushback underscores the bloc’s opposition to linking trade policy with territorial demands.

Inside the US, Democratic legislators are preparing counter-moves of their own. Party aides told News Of Losangeles that draft legislation designed to block the White House’s tariff order is already circulating on Capitol Hill. The bill would rely on Congress’s constitutional authority over trade, though passage through the Republican-controlled House remains uncertain.

Analysts at the Kobeissi Letter, who spent twelve months mapping Trump’s tariff strategy, told News Of Losangeles that markets should expect more turbulence. They label the Greenland dispute a “long-game” confrontation because a territorial transfer “can’t happen overnight and the EU remains highly opposed to even the idea of such a transaction.” The team predicts equity-index futures will gap lower when electronic trading resumes Sunday evening and again on Monday’s cash open.

The firm also notes a key difference from the recent US-China tariff episode. Where Beijing and Washington eventually found middle ground through phased purchase agreements, Brussels views Greenland’s sovereignty as non-negotiable. EU treaties explicitly designate the island as an autonomous territory within the Kingdom of Denmark, and any change would require unanimous consent from all 27 member states.

Trading volumes in BTC typically spike whenever traditional bourses are closed and geopolitical headlines break. This weekend proved no exception. Data from multiple exchanges show hourly volume rising more than 40% compared with the prior Saturday, yet bid-ask spreads stayed tight and implied volatility on weekly options barely budged. Market makers attribute the steadiness to range-bound price action that has dominated since early December.

Still, futures markets reopen in a few hours, and calendar spreads indicate traders are pricing in a possible breakout. CME Bitcoin futures for February are trading at a slight premium to spot prices, suggesting some participants are hedging for upside. Conversely, put options with strikes at $90,000 and $85,000 saw increased buying late Friday, reflecting defensive positioning should risk assets sell off on the tariff news.

The broader macro backdrop adds another layer of uncertainty. The Federal Reserve’s next rate decision looms at the end of the month, and December inflation data is due before the February 1 tariff deadline. Any sign that trade barriers are stoking price pressures could complicate the central bank’s policy path, a variable crypto investors have monitored closely since 2022.

For now, digital-asset traders appear content to wait for clearer signals. Social-media sentiment gauges maintained by data provider Santiment show Bitcoin-related optimism hovering at neutral levels, well below the “greed” territory that often precedes sharp corrections. Funding rates on perpetual-swap venues also remain flat, indicating balanced long-short positioning.

Whether the calm persists will depend on Brussels and Washington. If EU retaliation targets American tech giants or agricultural exports, the dispute could widen quickly. Denmark has already hinted at activating a little-known EU regulation that allows member states to impose immediate counter-tariffs on US seafood and aircraft parts, sectors that would hit states pivotal to the next election cycle.

For Bitcoin, the weekend’s stability may prove fleeting once equity traders return. Previous tariff rounds showed that crypto assets can decouple from traditional risk benchmarks for brief periods, but sustained trade conflicts tend to drag everything from copper to coin prices lower. The Kobeissi Letter analysts reiterated that Trump is likely to keep playing “hardball,” leaving little room for a quick diplomatic fix.

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