Trump’s Greenland tariffs: A step too far?

This Allianz Global Investors note assesses how President Trump’s Greenland-linked tariffs could escalate from a regional dispute into a broader macro shock.

• 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.

• EU retaliation could turn a contained conflict into a stagflationary global trade shock, complicating central-bank policy paths.

• 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.