Bankinter | Trump threatens tariffs on countries that send troops to Greenland. The tariffs would be 10% and would begin on 1 February and rise to 25% on 1 June. The countries affected at this time are Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. The tariffs would remain in effect until ‘an agreement for the complete and total purchase of Greenland’ is reached.
Bankinter analysis team’s view: Bad news for the markets. Trade tensions are increasing, as is the market’s geopolitical risk premium. Last week, Denmark and the United States announced the establishment of a joint commission for Greenland. Investors are awaiting further news on these negotiations and any statements Trump may make on the matter at the Davos forum this week.
