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PaperclipPerfector  6d ago (text post)   24509 thread views

Culture War Roundup for the week of January 12, 2026

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Trump announces plan to hit UK, Denmark and other European countries with extra tariffs over Greenland

Several EU countries sent tripwire forces into Greenland a few days ago. Now Trump has announced 10% tariffs on imported goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. As a sidenote, despite predictions of economic catastrophe, Trump's tariffs have been smaller and done less economic damage than estimated.

For starters, inflation is running below projections. In December, the just-announced inflation rate was 2.7 percent. The Fed’s favorite indicator was unchanged from November when the core inflation rate, at 2.6 percent, was the lowest since 2021.

Tariffs have had surprisingly little impact on higher consumer prices. “Tariff pass‑through to consumers has been much milder than anticipated,” Olu Sonola, head of U.S. economic research at Fitch Ratings, wrote in a recent research note. Yet revenue from tariffs brought in close to $300 billion in 2025, up from about $80 billion in 2024, and is currently on track to produce over $350 billion this year.

The evidence suggests that most costs are being absorbed by foreign exporters or by domestic sellers accepting lower profit margins. And since the actual tariffs on different countries are a crazy quilt of different rates, producers have also become expert at shifting their supply chains to countries with relatively lower tariffs. In addition, it’s easy to overstate the impact of tariffs on household costs, since imports are only about 14 percent of GDP. In other words, there are no tariffs on 86 percent of GDP.

The high tariff rate on China skews the averages. Excluding China, the effective tariff rate on the rest of the world, adjusting for trade share and exempt categories, is not the average 17 percent. It’s well below 10 percent. Thanks in part to the tariffs, the chronic U.S. global trade deficit has been shrinking. The October deficit was $29.4 billion, down nearly 40 percent from September. The decline continued in November, the last month for which statistics are available.

Still, no one knows what's the next step of Trump's master plan. Will it fizzle like the whole "Canada 51st state" thing? Polymarket estimates 27% chance that Trump will take "part of Greenland" in 2026.

It's still not clear to me what exactly the US wants to do with Greenland that they cannot already do. They already have a military base in Greenland and I can't imagine that (before this whole kerfuffle) Denmark would have made a big deal about a larger military presence of the USA in Greenland. Why bully and alienate countries in your sphere of influence to get something you already have?

We don't trust Denmark, and we especially don't trust the people of Greenland. Simple as.

One example I've heard brought up was in 2018, Greenland was courting a Chinese company as a major investor in one of their airports - against the wishes of the Danes I might add! It didn't go through after much controversy, but the fact that Greenland can choose to partner with China, or Russia, or whomever, is a serious risk.

The idea that they're 'in our sphere of influence', and so we can just rely on them to be our buddies forever, is counter to the worldview of the administration. We've seen disasters like the Panama canal, which we gave back to our friends the Panamanians, and which is now de-facto controlled by Chinese companies, and taken the lesson that anything we don't directly control will eventually be co-opted by our enemies. It's not an unreasonable conclusion based on recent history, even if it chafes at our allies in Europe to hear it.

I can't imagine that (before this whole kerfuffle) Denmark would have made a big deal about a larger military presence of the USA in Greenland

If Trump was proposing it, I'm about 70% likelihood they'd have made a big deal of it.

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