Pro-independence party wins Greenland election

Summary

Marketplace Morning Report Summary: Pro-Independence Party Wins Greenland Election

Release Date: March 12, 2025

In the latest episode of the Marketplace Morning Report, hosted by Liana Byrne, listeners are brought up to speed with critical global economic developments, ranging from the United States' imposing of steel and aluminium tariffs to the significant political shift in Greenland. The episode delves into the ramifications of these events on international trade, business operations, and geopolitical dynamics.

---

US Steel and Aluminium Tariffs Spark Global Backlash

The episode opens with a discussion on the United States' recent decision to impose a 25% tariff on all steel and aluminium imports with no exceptions or exemptions effective immediately. This move has elicited strong reactions worldwide, most notably from Australia and the European Union.

Australian Prime Minister Anthony Albanese labeled the tariffs as "unreasonable," reflecting Australia's frustration with the unilateral trade barriers. In response, European Commission President Ursula von der Leyen stated at [00:38] that:

"The European Union must act to protect consumers and business. The countermeasures we take today are strong, but proportionate."

Von der Leyen emphasized that while the US tariffs amount to $28 billion, the EU's countermeasures would be €26 billion, targeting steel, textiles, and food products starting April 1st (00:38).

Despite the tensions, the United Kingdom has opted not to retaliate but is actively seeking an exemption from the tariffs, aiming to maintain trade stability with the US.

Tariffs Expert Mariko Oy provides further insights at [01:13], explaining the varied impact on different countries:

"Beijing has said that it would take all necessary measures to protect its interest in response to these latest tariffs... China isn't affected as badly as some other Asian trading partners of the United States."

She highlights that while China's steel imports to the US have decreased to less than 2%, countries like South Korea (nearly 10%) and Vietnam are bearing a heavier burden from the new tariffs. This uneven impact underscores the complexities of global trade relationships, especially among close US allies like South Korea and Japan.

Liana Byrne further probes the EU's robust response at [02:09], with Oy noting:

"That's a lot of products being affected and essentially becoming more expensive for consumers and businesses, not just in the US but other parts of the world as well."

The swift EU countermeasures not only aim to safeguard their markets but also to send a clear message against protectionist policies, potentially paving the way for negotiations to resolve the trade dispute.

---

Business Sector Updates: Northvolt's Bankruptcy and Decline in Apple Watch Sales

Transitioning from trade tensions, the report covers significant developments in the business sector:

• Northvolt, Sweden's prominent electric vehicle (EV) battery manufacturer, has filed for bankruptcy, citing debts totaling $8 billion. This collapse marks a sobering moment for Europe’s ambitions to compete with established Asian battery giants, signaling potential setbacks in the continent's push towards sustainable energy solutions.

• Apple faces a downturn in its wearable technology segment as Apple Watch sales plummeted by 19% last year, according to market research firm Counterpoint. This decline has contributed to a downturn in global smartwatch sales, reflecting shifting consumer preferences and market saturation.

---

Greenland's Political Shift: Pro-Independence Victory and Mineral Resource Potential

A significant portion of the episode is dedicated to Greenland's recent general election, where a pro-business party advocating for a gradual path to independence emerged victorious. This political shift comes amid renewed international interest in Greenland’s abundant natural resources, including gold, copper, nickel, and rare earth elements essential for modern technologies.

BBC Correspondent Adrienne Murray provides an on-the-ground perspective, narrating the exploration activities with Amarok Minerals CEO Elder Olufsen at [03:49]:

"Gold, gold, gold, gold all the way over. Isn't that extraordinary?" (04:38)

Olufsen underscores Greenland's potential, stating at [04:54]:

"All of the resources are close to surface and there are deep water fuel. Get to these resources. This is in a tier one jurisdiction and can be a supplier of all the minerals at least the western decades."

Christian Kielssen, director of Greenland's business association, highlights the geopolitical significance:

"The geopolitical situation right now is driving more interest in Greenland... Greenland is a safe jurisdiction in many ways. It's very close to Europe, it's very close to North America." (05:26)

However, challenges persist. Jakob Klover Kyding from the Geological Survey of Denmark and Greenland points out the Arctic terrain's harsh conditions and limited infrastructure as significant barriers to mining operations (06:06). Despite these hurdles, Nya Nathanielson, Greenland's minister for business, trade, and raw materials, remains optimistic about future mining activities, expressing hopes for the operation of three to five new mines within the next decade (06:30).

This political and economic pivot aims to diversify Greenland's economy, currently dominated by the public sector and fishing, reducing its dependence on Danish subsidies. The international spotlight, intensified by former President Trump's controversial remarks about purchasing Greenland, could catalyze much-needed investments, propelling the island toward greater economic autonomy.

---

Consumer Confidence and Personal Finance Insight

In a notable concluding segment, Janelie Espinal introduces her podcast, Financially Inclined, addressing the sharp decline in consumer confidence, the steepest since 2021. She emphasizes the importance of understanding personal finance amidst economic uncertainty, offering practical advice on topics like negotiating job offers, managing money, and navigating entrepreneurship.

---

This comprehensive episode of the Marketplace Morning Report encapsulates critical economic and political developments shaping the global landscape. From trade disputes affecting international relations to Greenland's strategic maneuvers toward independence and resource exploitation, the report provides listeners with insightful analysis and expert commentary to navigate the complexities of today's economic environment.

---

For those interested in in-depth discussions on money management and personal finance, don’t forget to tune into Janelie Espinal’s Financially Inclined.

Transcript

[Liana Byrne]

As Trump's tariffs on steel and aluminium come into effect, the backlash is global. Hello, this is the Marketplace Morning Report, and we're live from the BBC World Service. I'm Liana Byrne. Another morning, another set of tariffs. The US has imposed 25% tariffs on all steel and aluminium imports. No exceptions, no exemptions. Among the first to complain was Australia. Its Prime Minister, Anthony Albanese, said the move was unreasonable. And the EU will hit back with counter tariffs on steel, textiles and food starting April 1st. Here's European Commission President Ursula von der Leyen.

[Ursula von der Leyen]

The European Union must act to protect consumers and business. The countermeasures we take today are strong, but proportionate. As the United States are applying tariffs worth $28 billion, we are responding with countermeasures worth 26 billion euros.

[Liana Byrne]

Meanwhile, the UK says it won't retaliate, but is pushing for an exemption. The BBC's Mariko Oy is, as ever, our tariffs expert. Good morning, Mariko. I want to know what the reaction is from China.

[Mariko Oy]

Good morning. Well, Beijing has said that it would take all necessary measures to protect its interest in response to these latest tariffs. But I have to say China isn't affected as badly as some other Asian trading partners of the United States, because If you remember, Mr. Trump slapped those tariffs on steel and aluminum during the first term as the US President, basically accusing them of flooding the market with cheap steel. So as a result, China now accounts for less than 2% of U.S. imports of steel from around the world, whereas countries like South Korea account for about just under 10%. Also, Vietnam exports a lot of steel and aluminium to the US Followed by Japan. So those countries are probably affected more by by these latest tariffs, even though, you know, especially South Korea and Japan are some of the closest allies of the United States.

[Liana Byrne]

But then when it comes to the eu, its response has been pretty robust, hasn't it? Says it's going to start countermeasures on the 1st of April.

[Mariko Oy]

Yes, that's right. I think the 1st of April is the key, isn't it? It could be that they are trying to come to an agreement, so it might be that they can agree to avoid these tariffs. But at least, as you said, the EU's response was fairly swift, saying that because these latest tariffs would affect products worth about 28 billion USD, they're going to put countermeasures which would affect practically about the same amount of money worth the US goods. So, you know, that's a lot of products being affected and essentially becoming more expensive for consumers and businesses, not just in the US but other parts of the world as well.

[Liana Byrne]

Okay. The BBC's Mariko Oy, thank you so much for joining us in Marketplace.

[Mariko Oy]

Thank you.

[Liana Byrne]

Let's do the numbers. Northvolt, Sweden's EV battery maker has filed for bankruptcy with debts of $8 billion, ending Europe's hope to rival Asian battery giants. And Apple watch sales dropped 19% last year, according to market research firm Counterpoint, dragging global smartwatch sales down for the first time to Greenland, now where a pro business party which favors a gradual path to independence has won its general election. The vote was dominated by President Trump's controversial suggestion of buying the vast mineral rich island from Denmark. The BBC's Adrienne Murray explores how its abundant natur resources are shaping the debate.

[Adrienne Murray]

Jagged gray peaks appeared before us as the motorboat weaved through dramatic fjords at Greenland's southern tip.

[Olufsen]

Now we're coming out of more rolling hills into more alpine landscapes. So very high mountain, pointy mountain on board.

[Adrienne Murray]

Elder Olivesson, the chief executive of mining firm Amarok Minerals, gestured ahead.

[Olufsen]

That alpine landscape is basically a gold belt that is about 50km wide and 200km long.

[Adrienne Murray]

After two hours sailing, we stepped ashore near the base camp, a cluster of mobile buildings beneath Nalinak Mountain, where Amarok is drilling for awe. Going by car, we drove into the gold mine and followed a dark tunnel that wound upwards inside the mountain.

[Olufsen]

Now just turn on your headlamp.

[Adrienne Murray]

Olufsen pointed to a seam in the blasted rock face.

[Olufsen]

Gold, gold, gold, gold all the way over. Isn't that extraordinary?

[Adrienne Murray]

In the nearby mountain range, the firm is hunting for valuable copper, nickel and rare earth elements. Olufsen thinks Greenland's untapped mineral reserves are a huge opportunity.

[Olufsen]

All of the resources are close to surface and there are deep water fuel. Get to these resources. This is in a tier one jurisdiction and can be a supplier of all the minerals at least the western decades.

[Adrienne Murray]

Greenland is endowed with an abundance of valuable minerals among the rare earth elements and critical metals like graphite and lithium, all vital materials needed for technologies like mobile phones, chips and batteries. Christian Kielssen is the director of Greenland's business association.

[Christian Kielssen]

The geopolitical situation right now is driving more interest in Greenland. We have a very strong China sit very heavily on the critical raw materials. Companies involved in this and the government involved around this are looking to safe places where they can access the critical raw materials. And Greenland is a safe jurisdiction in many ways. It's very close to Europe, it's very close to North America.

[Adrienne Murray]

But despite the hype, any potential gold rush has been slow to get going, and while dozens of exploration permits have been issued so far, only two mines are active. Jakob Klover Kyding is from the Geological Survey of Denmark and Greenland, which has mapped the territory's deposits.

[Jakob Klover Kyding]

We also have some challenges in Greenland because it's Arctic terrain, it's not very easily accessible. We have problems with harsh conditions in terms of the climate and limited infrastructure. So for those reasons, it's quite expensive to open a mine.

[Adrienne Murray]

Nya Nathanielson, Greenland's minister for business, Trade and raw materials, hopes another three to five mines will be operating within the next decade.

[Nya Nathanielson]

We're used to being a hotspot for the climate crisis. We want to be a part of the solution as well. And we do have a lot of the things needed for this transition to succeed.

[Adrienne Murray]

The country's 3 billion economy is driven by the public sector and fishing. Greenland's government wants mining. The income could help reduce its reliance on subsidies from Denmark. It's unclear what the US President's Greenland gambit will mean for mining, but there are hopes that this un unprecedented attention will bring much needed investment into the country. I'm the BBC's Adrienne Murray for Marketplace.

[Liana Byrne]

And I'm Liana Byrne with the Marketplace Morning Report from the BBC World Service.

[Janelie Espinal]

Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our fields about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance. I'm Janelie Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money and friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to Financially Inclined wherever you get your podcast.