“the weaponization of tariffs i

Europeans hold roughly $10 trillion in total U.S. assets, around $6 trillion of which is in American equities, Ozkardeskaya said. "Selling those assets would pull the rug from under U.S. markets" and could possibly get Trump's attention.The US Dollar Index posted its biggest decline since last April’s “Liberation Day” tariff rollout, while the euro climbed and gold surged to record levels as investors sought safety. Spot gold hit an all-time high above $4,600 an ounce as precious metals extended gains in what one strategist called a “much broader global risk off” move.

Billionaire investor Ray Dalio warned that the dynamic could escalate into what he called “capital wars” as countries reconsider their willingness to finance US deficits and hold dollar assets.“On the other side of trade deficits and trade wars, there are capital and capital wars,” Dalio told CNBC at the World Economic Forum meeting happening at Davos, Switzerland. “If you take the conflicts, you can’t ignore the possibility of the capital wars. In other words, maybe there’s not the same inclination to buy at U.S. debt and so on.”For equity markets, the selloff is colliding with already stretched expectations. Brad Long, chief investment officer at Wealthspire, told CNBC that he is not surprised the Greenland episode is hitting US stocks, given that the market is “already priced for perfection” with “high” valuations and earnings assumptions.

Long noted that while tariffs and Greenland are not new themes, “the weaponization of tariffs in the short term to achieve kind of a non-economic or maybe economic adjacent goal is new.”

Trump Threatens to Make French Wine More Expensive If Macron Doesn’t Join His Dumb ‘Peace’ Board
But the French president is not interested in paying $1 billion to join Trump’s needless faux-United Nations vanity project.

Khenpal1 · M

Denmark is a critical supplier, especially for insulin, making the U.S. healthcare system heavily reliant on these Danish exports for managing diabetes and obesity. The most significant of its pharmaceutical exports is insulin. Reported trade figures suggest that around 74% of US insulin imports (by value) “If Donald Trump decides it’s going to cost 50% more, Novo Nordisk can say, ‘Fine, we’ll just charge American consumers that much more.’”

Each package of Ozempic costs nearly $1,000, prior to discounts or insurance, according to Novo Nordisk. Wegovy is listed above $1,300 per package.

Already, the American price is many times higher than the drugs’ prices in other countries. A key focus of Trump’s first term was to close that gap. These tariffs could widen it.Most of the active ingredient for Ozempic and Wegovy, called semaglutide, is made in Denmark, according to investment bank BMO Capital Markets.Even just the threat of tariffs can cause stockpiling and increase prices, according to McDaniel, the Mercatus Center fellow.

“It definitely won’t decrease prices,” McDaniel said.

Kirkegaard, the Peterson Institute senior fellow, said that the entire European Union would be “compelled to respond” to the tariffs with levies of its own on products made by Americans at US facilities.