International support for the US claim to Greenland is non-existent. New tariffs would mean a serious escalation and risk sparking trade conflicts that have been simmering, believes Robert Bergqvist.
A global trade war?
Exactly.
Then it will be completely impossible to negotiate. The outside world will respond harshly, perhaps with tariffs. We have already seen threats from the EU to downgrade trade relations with the US. We are starting to reach some kind of limit now.
“Don't be naive”
One should not run too far too fast, since part of Trump's strategy is to create uncertainty among his opponents, the economist notes.
Tariffs are a multi-tool for him, and I see this as him hoping and believing that the world will now tremble and be afraid.
The move could also be a way to get all the spotlight on himself and the Greenland issue ahead of the World Economic Forum in Davos this week.
But don't be naive. On Tuesday he will have been in power for a year, and even though it's a lot of games, we have learned that he does things he says he will do.
Reactions in the United States
Many countries have rallied behind Denmark. NATO allies, including Sweden, have in recent days sent military personnel to Greenland to participate in an exercise. But that is not enough.
The world is reacting strongly. What we need is stronger reactions from within the US, not least politically.
The second key: Wall Street.
I would like the market to react more negatively, because when it does, Trump usually adjusts the message.
