Economy

Greenland crisis  Trump's tariff policy
Arnell: The market is likely to react negatively to Trump's new threat

The market is likely to turn a deaf ear to Donald Trump's new tariff threat against individual NATO countries over the Greenland issue. This is the assessment of von Euler & Partners' investment manager Jon Arnell.

"All other things being equal, the market should react negatively to the latest statements, given that the tone is rising and thus the uncertainty," he writes in a comment to Omni Ekonomi.

In addition, the stock markets have started the year strongly and thus there are profits to be made, Arnell notes. After Trump's new tariff threat, he expects investors to choose safer assets.

"Of course, investors are looking for stability, such as larger companies instead of the small ones that have performed strongly in the US. But gold and fixed income securities are also benefiting from increased uncertainty," writes Jon Arnell.

German economist: Trump will continue until Europe shows backbone

Donald Trump's new tariff threat linked to Greenland is a sign of Europe's weakness and inability to act. That's what Marcel Fratzscher, head of the German economic research institute DIW, says, according to Reuters.

He believes that Europe has "step by step given in" and let Trump get his way, instead of standing up for its own interests.

- That mistake is now backfiring on ourselves, says Fratzscher.

He adds that Trump will "continue to blackmail Europe until Europe shows backbone".

Economist: Keep a cool head - the EU will show solidarity

Donald Trump's threat of new tariffs against NATO countries that have shown support for Greenland will lead to strong solidarity from the rest of the EU. This is the assessment of Per Altenberg, chief economist at the Swedish College of Commerce, according to TT.

– I think it is still important to keep a cool head, but what can be seen is that the US seems to be using the tariff threat again as a foreign policy weapon, he tells the news agency.

Altenberg notes that the new tariffs, just like the previous ones, are not compatible with the World Trade Organization's WTO rules.

For the first time, Trump is directing a tariff threat at individual NATO countries, but Per Altenberg believes that the EU will respond jointly.