0616 GMT - U.S. President Trump's threatened tariffs on eight European nations over Greenland could result in a political fallout for the U.S. that is more significant than direct economic effects, say Lombard Odier strategists in a note. While the European Union previously accepted the 15% tariff framework, the bloc has greater leverage and looks more likely to retaliate with counter tariffs, they say. With U.S.'s November 2026 mid-term elections just months away, counter-tariffs are much more politically potent, the strategists note. The Greenland rationale also is likely to meet broad political support in Europe, they add. Lombard Odier's base case remains that these 10% tariffs will not go into effect, given Trump has more to lose while Europe has more incentive to retaliate. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
January 20, 2026 01:16 ET (06:16 GMT)
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