The dollar weakened after Trump imposed a 10% tariff on European countries opposing his Greenland plans, sparking concerns about US policy stability. European currencies strengthened, with the Swiss franc leading as a safe haven asset. Analysts suggest a shift away from US assets, emphasizing political risk premium and potential impacts on Eurozone economy. Geopolitical tensions raise de-dollarization debate and highlight US vulnerability. Market reactions to tariffs may be subdued due to growing numbness towards trade tensions.

Read more at Yahoo Finance: Dollar Faces Pressure on Trump’s New European Tariff Threats