Greenland tariffs: the political consequences would trump the economic

It remains unclear whether President Trump’s threat to impose tariffs on eight European countries unless a deal is reached to acquire Greenland will ever materialise. But if it does, the economic impact would be modest: at face value, the tariffs would shave a few tenths of a percentage point off GDP in the affected economies while adding a similar amount to US inflation. The political and geopolitical consequences would be much greater.