Trump's Tariff Threat Sparks Sell-Off in US Markets

President Trump's trade war threat with Europe on January 20 triggered a sharp sell-off in US assets, with stocks, bonds, and the dollar all declining.

Insights:
On January 20, 2026, President Donald Trump donald trumpannounced a potential rekindling of a trade war with Europe EUEU, leading to a swift and significant sell-off across major U.S. USUSasset classes. The announcement prompted investors to engage in a "Sell America" trade, marked by a sharp decline in U.S. stocks, bonds, and the dollar, while safe-haven assets like gold saw increased buying.
FILE PHOTO: A 3D-printed miniature model of U.S. President Donald Trump, EU and Greenland flags, and the word "Tariffs" appear in this illustration taken January 17, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D-printed miniature model of U.S. President Donald Trump, EU and Greenland flags, and the word "Tariffs" appear in this illustration taken January 17, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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