Is the Flash Crash happening now? Trump imposes tariffs on 8 European countries over Greenland dispute, EU launches €93 billion retaliatory plan

Background
1. US Tariff Threats: On January 17, Trump announced that due to opposition from 8 European countries (Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, Finland) to the US acquisition of Greenland, tariffs of 10% will be imposed on their exports to the US starting February 1, increasing to 25% on June 1 until an agreement is reached.
2. EU Countermeasures: On January 19, the 27 EU ambassadors held an emergency meeting and decided to propose tariffs on US goods worth €93 billion (about $107.7 billion) or restrict US companies from entering the EU market. The retaliatory measures were initially postponed until February 6 but may now be implemented earlier.

Market Reaction
- US stocks and crypto markets fluctuate: The escalation of the tariff war raises market concerns, with the three major US stock indices falling and the cryptocurrency market also under pressure. However, note that the current event has not yet directly affected specific market data; the volatility is mainly driven by trade war expectations.

Game Theory of Both Sides
1. Trump’s Strategy: Continuing the “pressure through confrontation” approach by using tariffs to force European concessions and strengthen domestic support.
2. EU’s Position: Emphasizing Greenland’s sovereignty (belonging to Denmark), rejecting territorial coercion, and using countermeasures to increase bargaining chips. The EU plans to meet with the US during the Davos Forum in Switzerland or to leverage the retaliatory threats to push Trump to compromise.

Potential Impact and Uncertainty
- Short-term: The tariff war may intensify US-Europe trade tensions, disrupt global supply chains, and push up commodity prices.
- Long-term: If negotiations break down, a full-scale trade war could be triggered, dragging down the global economy; if an agreement is reached, the Greenland sovereignty dispute may shift toward resource cooperation.

Summary
The current tariff war is more of a political bargaining tool, with both sides having room for compromise. Investors should pay attention to key dates: February 1 (US tariffs) and February 6 (EU retaliation deadline), as well as the progress of negotiations at the Davos Forum.