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)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum’s $2,540 Retest Becomes Key Test for the Rally
Canton Network breaks 2 month range! – CC’s run to $0.15 depends on THIS zone
Analysis: Wall Street Is Not Yet Ready to Short AI in Large Numbers
Overseas capital is aggressively buying US stocks! Net inflows reached $942 billions over the past 12 months, marking a record since 1985.
According to data from the US Department of the Treasury, in the 12 months ending July this year, overseas investors made net purchases of US stocks totaling $942 billion, marking the highest rolling 12-month total since records began in 1985. The net purchases in the second quarter alone reached $426 billion, setting a new single-quarter record. Meanwhile, overseas demand for US Treasuries has noticeably cooled, with purchase volumes falling significantly. As a result, the US is facing higher costs in government debt financing.
