Greenland threats and tariff warnings spark major US asset selloff

White House threats regarding Greenland and European tariffs triggered a global selloff on January 20. Markets saw the largest dollar drop since December.

洞察:
On January 20, 2026, White House threats regarding the future of Greenland and renewed tariff warnings against European allies triggered a significant broad selloff across United States USUSassets. Investors returning from a long holiday weekend dumped dollar assets, driving the U.S. Dollar Index down 0.7%, its largest one-day decline since mid-December. This geopolitical escalation, spearheaded by remarks from President Donald Trump donald trumpon Monday, activated a "Sell America" trade pattern previously observed after the April Liberation Day tariff announcements.
An employee holds U.S. dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. REUTERS/Willy Kurniawan
An employee holds U.S. dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. REUTERS/Willy Kurniawan
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