Global financial markets have entered a new wave of sharp fluctuations after US President Donald Trump announced his intention to impose additional tariffs on a number of European countries, a move that has reignited fears of a return to the trade war between Washington and Brussels.
The statements caused a decline in investors' risk appetite, which negatively impacted the performance of European and Asian stocks, coinciding with a noticeable weakness in the US dollar against major currencies, amid escalating concerns about potential economic and geopolitical repercussions.
In contrast, safe-haven currencies such as the Japanese yen and the Swiss franc received strong support, while high-risk assets, especially cryptocurrencies, came under clear selling pressure, with Bitcoin falling by more than 3%.
Analysts believe that markets have begun pricing in an increased political risk premium on the US dollar , as they await the European Union's reactions and the possibility of resorting to counter-economic measures that could exacerbate trade tensions in the coming months.
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