Market Analysis: Greenland Dispute Douses Hope for Easing of Trade Tensions

BlockBeats News, January 19 — Holger Schmieding, Chief Economist at Berenberg Bank, stated that Trump’s attempt to force Denmark to sell Greenland to the United States has dashed hopes that the intensity of the tariff war this year would be less severe than in 2025. Trump threatened that starting February 1, tariffs of 10% would be imposed on eight countries supporting Denmark, including the UK and France, and plans to raise the rate to 25% in June. Schmieding pointed out that this move could backfire, leading to an increase in US consumer prices by up to 0.15%.

He also said that in 2024, the total US imports from these target countries are about $350 billion. If the US-EU tariff agreement is ultimately abolished (despite the low likelihood), the losses for American consumers could be even more severe. Although logically both sides might ultimately avoid economic losses, “we must first be prepared for more turbulence.” (Jin10)