Trump's Greenland Tariffs Could Shave 0.5 Points off European Nations' GDP -- Market Talk
Dow Jones01-19 17:17
0917 GMT - The hit to GDP could be hit by as much as half a percentage point among European nations threatened by President Trump's extra tariffs over Greenland, Goldman Sachs economists Giovanni Pierdomenico and Sven Jari Stehn say in a note. A 10% tariff, which Trump said would go into effect on Feb. 1, would lower GDP by 0.1-0.2 points in the affected countries, via lower exports, while that would rise to 0.25-0.5 points for a 25% tariff, they say. All of these GDP hits would come on top of the 0.4% real GDP drag estimated from last year's tariff increases, the economists note. However, it remains highly uncertain whether these tariffs will be implemented, they say.(edward.frankl@wsj.com)
(END) Dow Jones Newswires
January 19, 2026 04:17 ET (09:17 GMT)
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