Euro Under Pressure, Fears Of Escalating Trade Tensions Between The Us And Europe

And after the threat of imposing heavy tariffs on European countries, there has once again been a fear of uncertainty and severe volatility in global financial markets.

President Trump has announced in a statement that if the United States is not allowed to buy Greenland, an additional 10 percent tariff will be imposed on imports from eight European countries from February 1, which will be increased to 25 percent from June 1. These countries include Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom. According to economists, the immediate effects of this announcement can be seen in global markets, where a wave of concern has spread among investors. Experts say that the euro currency may come under pressure, while the bearish trend in European stock markets is likely to increase.
Analysts say that trade tensions between the United States and the European Union are intensifying once again, which could prove detrimental not only to the economies of both regions but also to the global trading system.
European leaders have reacted strongly to this threat by the US President. A joint statement issued by European countries said that tariff threats could damage the long-standing relationship between Europe and the United States and could lead to a dangerous trade war, the consequences of which would be painful for the people and businesses on both sides. The statement added that Greenland is a sovereign territory and decisions regarding it cannot be made through pressure or threats. Experts say that if the situation remains tense, global trade, supply chains and investment trends could be badly affected. International financial institutions are also watching this development with concern and are urging the parties to resolve the issues through negotiations.