Trump’s Tariff Threats Overshadow Davos Agenda as Crypto Markets Watch
Political leaders and corporate executives convening at Davos face an unexpected disruptor: renewed US tariff threats against European allies. President Trump's weekend declaration of potential 10-25% tariffs on EU goods sent immediate ripples through currency markets, weakening both the euro and pound against the dollar.
While the World Economic Forum typically drives discussions on global cooperation, this year's gathering risks becoming a crisis management session. The specter of transatlantic trade wars looms particularly large for export-dependent economies like Germany, where DAX futures fell 1.1% in early trading.
Cryptocurrency markets remain watchful as traditional finance reacts. bitcoin and other major digital assets have historically served as hedges during fiat currency volatility, though no clear correlation has emerged in early trading.
