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Analyst: Market Will Focus on 'TACO Trade,' Trump May Use Tariff Threat as Negotiating Tactic
BlockBeats News, January 19th, analysts said that due to U.S. President Trump considering imposing tariffs on European countries over the Greenland issue, the uncertainty of U.S. policy has intensified, putting new downward pressure on the dollar. David Forrest, an analyst at Fornow Credit, said: Trump's tariff threat has reignited the "sell the U.S." sentiment. The market will also pay attention to the "TACO deal" (Trump's last-minute reversal) because Trump may use the tariff threat as a negotiation strategy. This will provide some support for the dollar.
By 2026, with the escalation of geopolitical risks during President Trump's term, the Euro will be one of the biggest losers. Tariffs could exacerbate the Eurozone's economically unfavorable cyclical factors and further weaken Europe's pressure on Russia regarding the Ukraine issue. (Xinhua)
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