Last night's sharp drop was attributed to these factors, are they correct? Geographical tariff war escalates: President Trump suddenly threatened unexpected tariffs on Greenland and used it as a bargaining chip at the Davos Forum. EU retaliation: In response, the EU drafted a retaliatory tariff package of up to €93 billion. Risk-off collapse: This trade friction triggered risk aversion in global markets, with funds flowing out of high-beta assets (such as cryptocurrencies) and into traditional safe-haven assets (such as gold, which outperformed the broader market yesterday).