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#Fundemental_update The most important facts in the news about the new tariffs imposed on 8 European countries by President Donald Trump in order to acquire Greenland.
1. New Tariff and Timeline
President Trump has imposed a 10% basic tariff on eight European countries, effective February 1, 2026. He has said that this tariff will be increased to 25% if no agreement is reached to take over Greenland by June 1.
Affected countries: Denmark, Norway, Sweden, France, Germany, Netherlands, Finland esco United Kingdom.
2. Why is Greenland needed? (Golden Dome Project)
Trump says the acquisition of Greenland is essential to US national security. Its primary purpose is to install a state-of-the-art missile defense system called Golden Dome there. The cost of this is estimated to be between $175 billion and $500 billion.
3. Impact on the Forex Market
This announcement has caused great unrest in the Global Forex Market.
Euro (EUR): The value of the Euro has fallen to $1.16 due to the imposition of tariffs on major European economies.
Danish Krone (DKK): The currency of Denmark, which owns Greenland, has hit its lowest value in six years.
Safe Havens: Gold prices are rising to record highs as inves
tors flock to safe havens like gold due to fears of a trade war.
4. European Response (Trade Bazooka)
European leaders have strongly condemned the move, with French President Emmanuel Macron and others saying Europe will not be intimidated. In response, Europe is preparing to impose tariffs on American goods using its "Anti-Coercion Instrument" (ACI), or trade bazooka.
5. Legal obstacles in the United States
The US Congress has introduced the Trade Review Act of 2025 to control Trump's unilateral decision. Also, a case is pending before the US Supreme Court regarding the President's power to impose such taxes.
In short: This is not just a trade issue, but a geopolitical crisis between world powers. We can expect a lot of volatility between the Euro and the Dollar in the Forex market in the coming months.
#news_update #TRUMP #DonaldTrump