EU Tariffs Spark Trade War Fears, Bitcoin Holds Steady at $95K

President Donald Trump has announced a new set of tariffs targeting Denmark, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. Effective from February 1, the tariffs will impose a 10% tax on all goods sent to the United States. The POTUS framed this as leverage, stating the rate would escalate to 25% by June 1 if a deal for the “complete acquisition” of Greenland is not reached. This move follows the deployment of EU troops to Greenland, which the U.S. administration has labeled a “hot zone.”

The European Union’s response was swift and decisive. Reports indicate the bloc plans to halt approval of a pending trade deal with the United States following the tariff threats. EU lawmakers have scheduled an emergency meeting to coordinate their response, signaling a significant deterioration in transatlantic relations. Analysts from the Kobeissi Letter, who spent 12 months researching Trump’s tariff strategies, identify this as the fourth major step in an ongoing trade war.

Unlike the rapid-fire exchanges seen in the recent US-China trade bout, analysts believe the Greenland situation will unfold more slowly. They note that such a potential acquisition “can’t happen overnight and the EU remains highly opposed to even the idea of such a transaction.” Nevertheless, they predict financial markets will open lower, anticipating that Trump will continue to play “hardball.”

On the domestic front, U.S. Democrats have moved quickly to counter the President’s strategy. They are reportedly planning to introduce legislation designed to block the proposed tariffs on EU countries. This internal political friction adds another layer of complexity to the unfolding crisis, highlighting the contentious nature of trade policy within the United States government.

The coordinated international and domestic pushback underscores the high stakes involved. The situation represents a multi-front challenge for the Trump administration, facing opposition both from traditional European allies and political rivals at home. The emergency EU meeting and the planned Democratic legislation are clear indicators that the tariff announcement is being treated as a serious economic and diplomatic provocation.

Despite the escalating trade war rhetoric and its history of sensitivity to such events, Bitcoin has displayed remarkable stability. During the volatile weekend when traditional markets were closed, BTC—the only major financial asset available for continuous trading—held its ground at just over $95,000. This contrasts sharply with its performance during the first major trade war escalation in April 2025, when the primary cryptocurrency tumbled from $110,000 to $75,000.

This resilience during subsequent tariff battles suggests a potential maturation in Bitcoin’s market behavior or a shifting perception of its role during geopolitical crises. However, analysts caution that the stability may be tested. More fluctuations are expected as new developments unfold, the EU holds its emergency meeting, and traditional futures markets reopen, potentially driving volatility across all asset classes.

The current steadiness of BTC near $95,000, while traditional finance prepares for a rocky open, presents a compelling narrative. It positions the cryptocurrency not as a reflexive risk-off asset, as seen in April 2025, but as a potential island of calm—or at least a differently calibrated market—in the opening stages of this new geopolitical storm centered on Greenland and transatlantic trade.