Donald Trump's 10% tariffs on Europe and the UK in a row over Greenland will lead to the “Dollar’s decline speeding up”

DONALD Trump's 10% tariffs on Europe and the UK in a row over Greenland will lead to the “US Dollar’s decline speeding up” and will “drag the UK into a recession”, experts have warned.

Trump wants the "complete and total purchase" of the Danish territory, saying it's essential for US and global security - with the White House saying it could even be taken militarily.

Just a few hours ago on Truth Social, Trump had said: “NATO has been telling Denmark, for 20 years, that ‘you have to get the Russian threat away from Greenland.’ Unfortunately, Denmark has been unable to do anything about it. Now it is time, and it will be done!!! President Donald J Trump."

On Saturday, Trump threatened to impose 10% tariffs on the UK, Denmark, Sweden, Germany, France, Norway, Finland and the Netherlands by 1 February, tariffs that would rise to 25% by 1 June.

Prime Minister Keir Starmer this morning hit back at Trump in his speech at Downing Street saying his approach was “completely wrong”.

Starmer said: “Such measures hurt British businesses and the economy."

He added: "A trade war is in nobody's interests.”

Gold has already hit $4,664.85 overnight while silver edged up to a new all-time-high of $93.33 in early trading Monday. Platinum is also soaring. 

Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said the Dollar was under pressure.

She added: "A Dollar today measured by real money, which is gold, has lost 94% of its value in 26 years. And that pace is now accelerating. We can produce all sorts of reasons why gold is rising, or alternatively for the few that understand the difference, that the rate of the Dollar’s decline is speeding up. 

"And there’s no doubt instability under America’s capricious President Trump is a proximate cause. President Trump is revealing himself to be the most destructive US president in history, exhibiting signs of leadership megalomania without the wisdom that tempers the actions of other leaders in a similar position of power.

"His capriciousness over trade tariffs knows no bounds. His attacks on the sovereignty of other nations in contravention of international law, which admittedly is not recognised in US law, has moved from covert regime changes to outright kidnapping of a country’s leader, and the bombing of others."

Colette Mason, Author & AI Consultant at London-based Clever Clogs AI, accused the US of only caring about resources.

She continued: "This isn’t about owning Greenland. It’s about keeping AI-critical resources in US-aligned hands. When Donald Trump says the US ‘needs’ Greenland, he’s reframing minerals as national security assets. AI has turned rare earths, gallium, germanium and energy into strategic choke points. 

"Europe’s failure to develop Greenland’s mineral wealth left a vacuum others are now moving to fill. Globally, China moved early through supply-chain dominance rather than territory. The US response is cruder: tariffs for leverage, security language for control. Trump's signal to allies is blunt. 

“AI supply chains must sit in trusted hands. Once resources are framed as security infrastructure, local consent becomes secondary. Environmental and regulatory delays start to look like strategic weaknesses. Neutral territory stops being neutral. Minerals become leverage before they’re ever mined. Oil once shaped geopolitics; now it’s the materials that power chips, data centres and defence systems.”

Rohit Parmar-Mistry, Founder at Burton-on-Trent-based Pattrn Data, said the US is “dragging the UK into recession”.

He added: "This is classic Trump: throwing his toys out the pram because the world won’t bend the knee. But let’s be clear, this isn’t a clever 'TACO' trade or 4D chess; it is economic vandalism. We are witnessing the US rapidly devolve into a rogue state, isolating itself while dragging the UK into a recession. 

"Gold hitting $4,664 isn't a market triumph; it’s a vote of no confidence in global stability. Investors are fleeing because the 'leader of the free world' is now the biggest risk. Be incredibly careful with crypto, too. We’ve seen this administration’s circle treat digital assets like a personal casino, manipulating markets with meme coins. 

"Do not mistake their volatility for a safe haven. Trump will claim these tariffs as a 'win', but the reality is stark: Americans will pay more, and we will become poorer. Starmer must do more than just respond; he needs to fight back. Appeasement doesn't work with bullies. If we don't draw a line now, we are complicit in our own economic decline."

Ross Lacey, Director & Independent Financial Adviser at Rayleigh-based Fairview Financial Management, urged investors to hold tight.

He continued: "Investors should do nothing. Market dips are part of investing and they can't be timed with any accuracy or consistency. There will always be news which has impacts on stock markets; both good and bad. It's the fortunes (or misfortunes) of companies that will drive share prices over the longer term. 

“If we do see a meaningful stock market dip, it'd be a good time to revisit any withdrawals you may be making from investments and pensions to see if these should continue from invested money.”

Scott Gallacher, Director at Leicester-based Rowley Turton, said Trump's move is not as bad for the world economy as many are saying.

He added: "Trump’s renewed threats around Greenland and broad-based tariffs on key allies are unhelpful for markets and increase short-term volatility, particularly in equities sensitive to global trade. 

"However, history suggests investors should be cautious about overreacting — tariff powers ultimately sit with Congress, not the President, which raises the likelihood that this becomes another bout of brinkmanship rather than a sustained policy shift. 

'Safe-haven assets may benefit in the short term, but for long-term investors this is hopefully more like noise than a reason to materially change strategy."