This Allianz Global Investors note assesses how President Trump’s Greenland-linked tariffs could escalate from a regional dispute into a broader macro shock.
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The US plans a 10pp tariff increase from 1 Feb on imports from eight European countries, lifting rates to 20% (UK) and 25% (others), with a further +15pp threatened by June.
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EU retaliation could turn a contained conflict into a stagflationary global trade shock, complicating central-bank policy paths.
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Market sentiment is pivotal: risk-off pressure could curb escalation, while complacency may embolden further steps.
What would your portfolio do if “safe havens” stop behaving like safe havens read the full report to stress-test the scenario.
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