Major shift in trade policy: The Trump administration has announced a phased tariff increase targeting several European nations starting February 1st. Initial duties hit 10%, with select countries—Denmark, Norway, Sweden, France, Germany, UK, Netherlands, and Finland—facing up to 25% rates.

What does this mean for markets? Tariff escalations typically trigger currency volatility and capital reallocation. Risk-off sentiment often sees flows toward digital assets as hedges against traditional market uncertainty. Watch for shifts in EUR/USD parity and how institutional players adjust their macro positioning. This could reshape both equity and crypto market dynamics across Q1.