"Not only do Trump's latest tariffs pose an existential threat to the trans-Atlantic alliance, the fallout could threaten the dollar's dominance and so-called exorbitant privilege. "The dollar's reserve-currency status allows us to live beyond our means. Soaring debt, tariffs, and military threats jeopardize that status," Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, warned on X. "When it's lost, economic collapse will follow.""
"The dollar sank 0.31% against the euro to $1.16 and tumbled 0.32% against the yen to 157.58. Meanwhile, gold rose 1.95% to a fresh record of $4,684.30 per ounce. Silver jumped 5.66% to $93.53, also a new high. Due to the Martin Luther King Jr. Day holiday on Monday, U.S. stock and bond futures were inactive. On Saturday, Trump said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will be hit with a 10% tariff starting on Feb. 1"
"At the same time, the European Union is weighing options for retaliation, including the bloc's anti-coercion instrument that has been described as a "trade bazooka" for its scope and severity. And the EU holds significant leverage over Trump as European countries own $8 trillion of U.S. bonds and equities, almost twice as much as the rest of the world combined, according to George Saravelos, head of FX research at Deutsche"
The dollar fell 0.31% versus the euro to $1.16 and 0.32% versus the yen to 157.58 while gold climbed 1.95% to $4,684.30 per ounce and silver jumped 5.66% to $93.53. U.S. stock and bond futures were inactive for Martin Luther King Jr. Day. A 10% tariff will apply to Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting Feb. 1 and rise to 25% on June 1 until a deal is reached over Greenland. The European Union is considering retaliatory measures and holds roughly $8 trillion in U.S. assets.
Read at Fortune
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