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US President Donald Trump's apparently coercive threat to force Western allies not to oppose his proposed annexation of Greenland, or face further damage to their trade with the US, is without both parallel and precedent. We've had some unusual and unexpected economic threats from President Trump over the past year, but I think it is safe to say this exceeds all of them, and takes us into both surreal and utterly dangerous territory.
If taken at face value, it is a form of economic war being levied by the White House on its closest allies. That's because it targets allies at incredibly short notice and for a cause that essentially could break up Nato and the western alliance. This will be leaving officials from those countries absolutely baffled. In fact, it's so outlandish that they may indeed be more baffled than angry.
Nobody in the world would assume that a threat like this - based on acquiring the land of your ally - would ever actually happen. Does Trump really have the backing in the US, in Congress, even in his own administration to do this?
Is this, as some trade officials have to assume, the biggest TACO (Trump will Chicken Out) of all time? These things can come and go and, economically, these countries have handled the damage so far.
Think of Canada. It has seen its trade with the US slump. But its prime minister Mark Carney's strategy has seen Canada's trade surge with the rest of the world by 14% - which amazingly is worth more than was needed to cover its trade lost with the US. Carney has been in China this week pushing "a new world order" and pursuing more trade with China, not the detachment sought by some US administration officials.
"This is China versus the world," the Trump administration was trying to persuade the rest of the world just three months ago. Carney is showing up this approach, something which is perhaps notable background context for the timing of today's intervention.
If, however, we do take Trump's latest threats seriously, they are extremely troubling. Not so much because of the 10% tariff, but because of its rationale - taking land from an ally, and the act of publicly trying to coerce your allies. How would the world react if China or Russia had sent a threat like this to some of their allies?
The basis of the threat is clearly deeply worrying. Many in capitals around the world will read Trump's social media announcement and question the functioning of American decision making. President Trump arrives to meet leaders of the allied countries whose economies he has just threatened at the World Economic Forum on Wednesday.
Most of the world will hope that, by that time, this unparalleled threat will have somehow disappeared.
© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla
Comments
He must surely know that Greenland annexation would probably result in NATO disintegration.
Is this what Trump—or J.D. Vance, Stephen Miller, Marco Rubio—truly want?
What is the real end game here?
https://www.mutualfundobserver.com/discuss/discussion/comment/206370/#Comment_206370
They are the eggmen.
I am the walrus.
Goo goo g' joob g' goo goo g' joob.
(from bbc, i recall)
former nato naval commander drew simplest possible line for the the benefit of americans :
- during his decades of service, russia was extremely protective and aggressive regarding passage through its northern waters w/out permission for foreign ships
- trump has no interest in thwarting russia\putin
- russia has become >90% dependent on china for its trade economy, and 100% dependent for continued war on ukraine via funds and equipment
- china has been given sea access to greenland via russia
yes, more than 2 connected links is too much for MAGA, especially when its russia (because it is almost always russia)