Escalating trade tensions are heating up between the US and Europe. The EU is gearing up to hit back with tariffs on roughly $108 billion worth of American goods—but only if President Trump doesn't back down from his threat to slap a 10% levy on European imports starting February 1st.

This kind of tit-for-tat trade war can ripple through the broader markets. When tariff uncertainty spikes, investors tend to get nervous about inflation, currency movements, and overall economic slowdown. For crypto traders paying attention to macro trends, this is the kind of geopolitical friction that historically sends liquidity hunting for alternative assets.

The February 1st deadline is now the key date to watch. Whether Trump actually implements the tariffs or both sides find common ground will likely move risk sentiment across multiple asset classes—including crypto.