Market Analysis: Greenland Dispute Dashes Hopes for Calmer Trade Situation
BlockBeats News, January 19 — Berenberg Bank Chief Economist Holger Schmieding stated that Trump’s attempt to force Denmark to sell Greenland to the United States has dashed hopes that this year’s tariff war will be less intense than in 2025. Trump has threatened to impose a 10% tariff on eight countries, including the UK and France, which support Denmark, starting February 1, and plans to raise the rate to 25% in June. Schmieding pointed out that this move could backfire, causing U.S. consumer prices to rise by as much as 0.15%.
He also noted that in 2024, the total value of U.S. imports from these targeted countries is about $350 billions. If the U.S.-EU tariff agreement is ultimately scrapped (although this is unlikely), the losses for U.S. consumers could be even more severe. Although logically both sides may eventually avoid economic losses, “we must first be prepared for more turbulence.” (Golden Ten Data)
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