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Market Analysis: Greenland Dispute Dampens as Trade Situation Sees Hopeful Signs
By: theblockbeats.news|2026/01/19 11:30:17
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BlockBeats News, January 19th, Holger Schmieding, Chief Economist of Berenberg Bank, stated that Trump's attempt to pressure Denmark to sell Greenland to the United States has dashed hopes that this year's trade war escalation will be milder than in 2025. Trump threatened to impose a 10% tariff starting from February 1st on eight countries supporting Denmark, including the UK and France, and plans to raise the tariff to 25% in June. Schmieding pointed out that this move could backfire, leading to a potential 0.15% increase in consumer prices in the United States.
He also stated that the total U.S. imports from these target countries in 2024 were about $350 billion. If the US-EU tariff agreement is ultimately scrapped (although this is unlikely), the losses for American consumers could be even more severe. Although logically both sides could eventually avoid economic losses, "we must first be prepared to deal with more turmoil." (Kylie)
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