The EU just issued a stark warning about potential economic fallout from the escalating tariff dispute. After Trump threatened significant duties on European goods—including controversial moves around Greenland—Brussels flagged the risk of a dangerous downward spiral in trade relations and economic growth.

For the crypto market, this kind of macroeconomic tension matters more than many realize. Geopolitical trade wars tend to spark currency volatility, push capital flows toward safe havens, and create uncertainty that ripples across asset classes. When major economies tighten up and tariffs spike, institutional investors often recalibrate their portfolios, which can either fuel demand for alternative assets like crypto or trigger broader risk-off sentiment depending on how things unfold.

The EU's warning essentially signals that negotiation room is shrinking and tensions could escalate further. Worth keeping an eye on as these dynamics typically precede market-moving policy announcements.