(Jan 19): The dollar faces fresh headwinds as President Donald Trump weighs tariffs on European nations tied to his plan to acquire Greenland, raising uncertainties over US policies, according to analysts. The Bloomberg Dollar Spot Index fell 0.1% in Asia after Trump threatened a 10% tariff on European allies supporting Denmark’s hold on Greenland. The market will also be looking for the ‘TACO trade’ as Trump could be using the threat of tariffs as a negotiating ploy. Europe will be one of the biggest losers of the growing geopolitical risks under Trump’s presidency in 2026. The market dynamic is that US assets, including the US dollar, are now carrying a much higher political risk premium.

Source: The Edge Markets January 19, 2026 05:05 UTC