Trade protectionism is on the rise. After negotiations between the US government and Denmark, Greenland broke down this week, the US announced a 10% tariff increase on goods from European countries including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland (stacked on top of existing tariffs) starting from February 1. The implementation of these new tariffs is conditional—only if the US and the relevant countries reach a comprehensive acquisition agreement for Greenland will the tariffs be lifted.

What does this mean? European economies may face escalating trade frictions, leading to higher import and export costs. From the perspective of the crypto market, such macro risks typically increase the demand for safe-haven assets like Bitcoin and other digital assets. Meanwhile, the European Central Bank may be forced to adjust monetary policies in response, which could impact the global liquidity environment. Investors should closely monitor subsequent negotiations and market reactions.