0516 GMT - U.S. President Trump's threat to impose tariffs on eight European countries in an effort to "acquire" Greenland would have only a modest economic impact if enacted, but poses far more serious political and geopolitical consequences, Capital Economics says in a note. Chief economist Neil Shearing says the legal basis for such tariffs is unclear and notes that Trump hasn't followed through with other similar threats. Any tariffs would lead to trade rerouting within the E.U. The U.K. and Germany, having the largest export shares to the U.S., would be hit hardest, with a 10% tariff shaving about 0.1% off GDP and a 25% levy cutting 0.2%-0.3%. U.S. inflation could rise 0.1%-0.2%, though that may be offset by other factors. However, any seizure of Greenland could inflict irreparable damage to NATO. (jason.chau@wsj.com)
(END) Dow Jones Newswires
January 19, 2026 00:16 ET (05:16 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
