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Dollar sinks as Trump’s new tariffs raise fears about U.S. debt and reserve currency status

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The greenback dropped while precious metals rallied Sunday as financial markets started reacting to President Donald Trump’s new tariff threats.

The dollar sank 0.31% against the euro to $1.16 and tumbled 0.32% against the yen to 157.58. Meanwhile, gold rose 1.95% to a fresh record of $4,684.30 per ounce. Silver jumped 5.66% to $93.53, also a new high.

Due to the Martin Luther King Jr. Day holiday on Monday, U.S. stock and bond futures were inactive.

On Saturday, Trump said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will be hit with a 10% tariff starting on Feb. 1 that will rise to 25% on June 1, until a “Deal is reached for the Complete and Total purchase of Greenland.”

The announcement came after those countries sent troops to Greenland this past week, ostensibly for training purposes, at the request of Denmark.

Trump has refused to back down from taking over Greenland, even keeping military options on the table, while the administration has also left open the possibility of buying the island.

At the same time, the European Union is weighing options for retaliation, including the bloc’s anti-coercion instrument that has been described as a “trade bazooka” for its scope and severity.

Not only do Trump’s latest tariffs pose an existential threat to the trans-Atlantic alliance, the fallout could threaten the dollar’s dominance and so-called exorbitant privilege.

“The dollar’s reserve-currency status allows us to live beyond our means. Soaring debt, tariffs, and military threats jeopardize that status,” Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, warned on X. “When it’s lost, economic collapse will follow.”

And the EU holds significant leverage over Trump as European countries own $8 trillion of U.S. bonds and equities, almost twice as much as the rest of the world combined, according to George Saravelos, head of FX research at Deutsche Bank.

America’s vulnerability in global financial markets was not lost on Rep. Thomas Massie, R-Ky., who reacted to Schiff’s post.

“As the dollar’s reserve currency status diminishes, so does our ability to tax the world by creating more money,” he wrote. “When reserve status is lost, maintaining current spending levels and servicing the debt will be even more painful for Americans who will bear the full inflation tax.”



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The mayor of Minneapolis said Sunday that sending active duty soldiers into Minnesota to help with an immigration crackdown is a ridiculous and unconstitutional idea as he urged protesters to remain peaceful so the president won’t see a need to send in the U.S. military.

Daily protests have been ongoing throughout January since the Department of Homeland Security ramped up immigration enforcement in the Twin Cities of Minneapolis and St. Paul by bringing in more than 2,000 federal officers.

Three hotels where protesters have said Immigration and Customs Enforcement officers were staying in the area stopped taking reservations Sunday.

In a diverse neighborhood where immigration officers have been seen frequently, U.S. postal workers marched through on Sunday, chanting: “Protect our routes. Get ICE out.”

Soldiers specialized in arctic duty told to be ready

The Pentagon has ordered about 1,500 active-duty soldiers based in Alaska who specialize in operating in arctic conditions to be ready in case of a possible deployment to Minnesota, two defense officials said Sunday.

The officials, who spoke on condition of anonymity to discuss sensitive military plans, said two infantry battalions of the Army’s 11th Airborne Division have been given prepare-to-deploy orders.

One defense official said the troops are standing by to deploy to Minnesota should President Donald Trump invoke the Insurrection Act.

The rarely used 19th century law would allow the president to send military troops into Minnesota, where protesters have been confronting federal immigration agents for weeks. He has since backed off the threat, at least for now.

“It’s ridiculous, but we will not be intimidated by the actions of this federal government,” Minneapolis Mayor Jacob Frey told CNN’s State of the Union on Sunday. “It is not fair, it’s not just, and it’s completely unconstitutional.”

Thousands of Minneapolis citizens are exercising their First Amendment rights and the protests have been peaceful, Frey said.

“We are not going to take the bait. We will not counter Donald Trump’s chaos with our own brand of chaos here,” Frey said.

Gov. Tim Walz has mobilized the Minnesota National Guard, although no units have been deployed to the streets.

Some hotels close or stop accepting reservations amid protests

At least three hotels in Minneapolis-St. Paul that protesters said housed officers in the immigrant crackdown were not accepting reservations Sunday. Rooms could not be booked online before early February at the Hilton DoubleTree and IHG InterContinental hotels in downtown St. Paul and at the Hilton Canopy hotel in Minneapolis.

Over the phone, an InterContinental hotel front desk employee said it was closing for the safety of the staff, but declined to comment on the specific concerns. The DoubleTree and InterContinental hotels had empty lobbies with signs out front saying they were “temporarily closed for business until further notice.” The Canopy hotel was open, but not accepting reservations.

The Canopy has been the site of noisy protests by anti-ICE demonstrators aimed to prevent agents from sleeping.

“The owner of the independently owned and operated InterContinental St. Paul has decided to temporarily close their hotels to prioritize the safety of guests and team members given ongoing safety concerns in the area,” IHG Hotels & Resorts spokesperson Taylor Solomon said in a statement Sunday. “All guests with existing reservations can contact the hotel team for assistance with alternative accommodations.”

Earlier this month, Hilton and the local operator of the Hampton Inn Lakeville hotel near Minneapolis apologized after the property wouldn’t allow federal immigration agents to stay there. Hampton Inn locations are under the Hilton brand, but the Lakeville hotel is independently operated by Everpeak Hospitality. Everpeak said the cancelation was inconsistent with their policy.

US postal workers march and protest

Peter Noble joined dozens of other U.S. Post Office workers Sunday on their only day off from their mail routes to march against the immigration crackdown. They passed by the place where an immigration officer shot and killed Renee Good, a U.S. citizen and mother of three, during a Jan. 7 confrontation.

“I’ve seen them driving recklessly around the streets while I am on my route, putting lives in danger,” Noble said.

Letter carrier Susan Becker said she came out to march on the coldest day since the crackdown started because it’s important to keep telling the federal government she thinks what it is doing is wrong. She said people on her route have reported ICE breaking into apartment buildings and tackling people in the parking lot of shopping centers.

“These people are by and large citizens and immigrants. But they’re citizens, and they deserve to be here; they’ve earned their place and they are good people,” Becker said.

Republican congressman asks governor to tone down comments

A Republican U.S. House member called for Walz to tone down his comments about fighting the federal government and instead start to help law enforcement.

Many of the officers in Minnesota are neighbors just doing the jobs they were sent to do, House Majority Whip Tom Emmer told WCCO-AM in Minneapolis.

“These are not mean spirited people. But right now, they feel like they’re under attack. They don’t know where the next attack is going to come from and who it is. So people need to keep in mind this starts at the top,” Emmer said.

Across social media, videos have been posted of federal officers spraying protesters with pepper spray, knocking down doors and forcibly taking people into custody. On Friday, a federal judge ruled that immigration officers can’t detain or tear gas peaceful protesters who aren’t obstructing authorities, including when they’re observing the officers during the Minnesota crackdown.

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Contributing were Associated Press writers Konstantin Toropin in Washington; Steve Karnowski in Minneapolis; Edith M. Lederer at the United Nations; Jeffrey Collins in Columbia, South Carolina; and Christopher Weber in Los Angeles.



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Trump is charging world leaders $1 billion each for their countries to permanently join Gaza ‘Board of Peace’

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At least eight more countries say the United States has invited them to join President Donald Trump’s Board of Peace, a new body of world leaders meant to oversee next steps in Gaza that shows ambitions for a broader mandate in global affairs. Two of the countries, Hungary and Vietnam, said they have accepted.

A $1 billion contribution secures permanent membership on the Trump-led board instead of a three-year appointment, which has no contribution requirement, according to a U.S. official who spoke on condition of anonymity about the charter, which hasn’t been made public. The official said the money raised would go to rebuilding Gaza.

Hungarian Prime Minister Viktor Orbán has accepted an invitation to join the board, Foreign Minister Péter Szijjártó told state radio Sunday. Orbán is one of Trump’s most ardent supporters in Europe.

Vietnam’s Communist Party chief, To Lam, also has accepted, a foreign ministry statement said.

India has received an invitation, a senior government official with knowledge of the matter said, speaking on condition of anonymity as the information hadn’t been made public by authorities.

Australia has been invited and will talk it through with the U.S. “to properly understand what this means and what’s involved,” Deputy Prime Minister Richard Marles told Australian Broadcasting Corp. on Monday.

Jordan, Greece, Cyprus and Pakistan said Sunday they had received invitations. Canada, Turkey, Egypt, Paraguay, Argentina and Albania have already said they were invited. It was not clear how many have been invited in all.

The U.S. is expected to announce its official list of members in the coming days, likely during the World Economic Forum meeting in Davos, Switzerland.

Those on the board will oversee next steps in Gaza as the ceasefire that took effect on Oct. 10 moves into its challenging second phase. It includes a new Palestinian committee in Gaza, the deployment of an international security force, disarmament of Hamas and reconstruction of the war-battered territory.

In letters sent Friday to world leaders inviting them to be “founding members,” Trump said the Board of Peace would “embark on a bold new approach to resolving global conflict.”

That could become a potential rival to the U.N. Security Council, the most powerful body of the global entity created in the wake of World War II. The 15-seat council has been blocked by U.S. vetoes from taking action to end the war in Gaza, while the U.N.’s clout has been diminished by major funding cuts by the Trump administration and other donors.

Trump’s invitation letters for the Board of Peace noted that the Security Council had endorsed the U.S. 20-point Gaza ceasefire plan, which includes the board’s creation. The letters were posted on social media by some invitees.

The White House last week also announced an executive committee of leaders who will carry out the Board of Peace’s vision, but Israel on Saturday objected that the committee “was not coordinated with Israel and is contrary to its policy,” without details. The statement by Prime Minister Benjamin Netanyahu’s office was rare criticism of its close ally in Washington.

The executive committee’s members include U.S. Secretary of State Rubio, Trump envoy Steve Witkoff, Trump’s son-in-law Jared Kushner, former British Prime Minister Tony Blair, World Bank President Ajay Banga and Trump’s deputy national security adviser Robert Gabriel, along with an Israeli business owner, billionaire Yakir Gabay.

Members also include representatives of ceasefire monitors Qatar, Egypt and Turkey. Turkey has a strained relationship with Israel but good relations with Hamas and could play an important role in persuading the group to yield power in Gaza and disarm.

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Boak reported from West Palm Beach, Florida. Associated Press writers Justin Spike in Budapest, Hungary, Rajesh Roy in New Delhi and Rod McGuirk in Canberra, Australia, contributed to this report.



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After adding Trump administration statements, ’60 Minutes’ to air report on deportations

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“60 Minutes” on Sunday plans to air a story about Trump administration deportations that was abruptly pulled from the newsmagazine’s lineup a month ago, sparking an internal battle about political pressure that spilled out into the open.

In the story, correspondent Sharyn Alfonsi spoke to deportees who had been sent to El Salvador’s notoriously harsh CECOT prison. When the segment critical of the administration was struck from the Dec. 21 episode on order of new CBS News editor-in-chief Bari Weiss, Alfonsi told her “60 Minutes” colleagues that it “was not an editorial decision, it was a political one.”

Weiss argued that the story did not sufficiently reflect the administration’s viewpoint or advance reporting that had been done by other news organizations earlier.

The story was updated to include Trump administration statements, although it has no new on-camera interviews. Alfonsi was also set to give more details about the two migrants that she interviewed about their experiences in the prison, according to someone familiar with the broadcast who spoke under condition of anonymity because the person was not allowed to give details in advance.

“CBS News leadership has always been committed to airing the ’60 Minutes’ CECOT piece as soon as it was ready,” the news division said in a statement. “Tonight, viewers get to see it, along with other important stories, all of which speak to CBS News’ independence and the power of our storytelling.”

The decision became a flashpoint for critics who said the appointment of Weiss, founder of the Free Press website who had no previous experience in television news, represented an attempt by the network’s new corporate leadership to curry favor with Trump.

Alfonsi said in her email that administration officials had declined to make anyone available for an on-camera interview, calling that a tactical maneuver designed to kill the story.

While pulled from the broadcast in December, Alfonsi’s original story mistakenly became available online. CBS News had fed a version of the newsmagazine to Global Television, a network that airs “60 Minutes” in Canada, which posted it on its website before the last-minute switch removing the piece.

That enabled sharp-eyed viewers to see what Weiss had rejected, offering the opportunity to compare it to what “60 Minutes” eventually put on the air.

In the version shown in Canada, Alfonsi said the administration declined requests for interviews and referred questions about the prison’s operation to the government of El Salvador, which did not respond to “60 Minutes.” The story included a brief clip of President Donald Trump saying the prison operators “don’t play games,” and one from White House press secretary Karoline Leavitt saying that “heinous monsters, rapists, murderers, sexual assaulters, predators who have no right to be in this country” were sent there.

Since Weiss’ appointment, Trump administration officials have been more visible on CBS News, in interviews that she sometimes helped arrange. The president himself was interviewed by Norah O’Donnell on “60 Minutes” on Nov. 2.

The New York Times reported Saturday that after Trump was interviewed last week by new “CBS Evening News” anchor Tony Dokoupil, Leavitt told the network that “we’ll sue your ass off” if the exchange wasn’t aired in full.

All of the 13-minute interview was shown Tuesday, an unusual step for one of the broadcast networks’ evening newscasts, a half hour summary of the day’s big stories. CBS told The Times that it had decided to run the interview unedited at the time it was booked.



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