BlockBeats News, January 19 — Analysts say that due to U.S. President Trump considering imposing tariffs on European countries over the Greenland issue, U.S. policy uncertainty has increased, putting the dollar under new downward pressure. Fannon Credit analyst David Forrest stated: “Trump’s tariff threats have reignited the ‘sell US’ sentiment.” The market will also focus on the “TACO trade” (Trump backing down at the last minute), as Trump may use tariff threats as a negotiation strategy. This will provide some support to the dollar.
In 2026, as geopolitical risks during President Trump’s term intensify, the euro will be one of the biggest losers. Tariffs could exacerbate the cyclical downside factors in the Eurozone economy and further weaken Europe’s pressure on Russia regarding Ukraine. (Jin10)
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