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 that will rise to 25% on June 1, until a “Deal is reached for the Complete and Total purchase of Greenland.”
The announcement came after those countries sent troops to Greenland this past week, ostensibly for training purposes, at the request of Denmark.
Trump has refused to back down from taking over Greenland, even keeping military options on the table, while the administration has also left open the possibility of buying the island.
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.
America’s vulnerability in global financial markets was not lost on Rep. Thomas Massie, R-Ky., who reacted to Schiff’s post.
