Marketplace Morning Report: "The Economic Fight Over Greenland"
Episode Date: January 19, 2026
Host: Sabri Benishour (in for David Brancaccio)

Episode Overview

This episode dives into escalating economic tensions around U.S. President Trump's renewed push to purchase Greenland. As the U.S. threatens tariffs against Europe to force a deal, the European Union weighs retaliation, setting the stage for contentious discussions during the World Economic Forum in Davos. The episode also examines related global economic shifts, especially the impact of U.S.-China trade friction on European markets, culminating with insights from economics expert Jay Shambaugh.

Main Segments & Key Points

1. U.S. Bid for Greenland Ignites Economic Tensions

Starts: 00:31

• President Trump pushes to purchase Greenland: He hasn't ruled out military force and is now threatening new tariffs on goods from eight European countries unless the U.S. acquisition goes through.
• European Union response: Preparing possible tariff retaliation on U.S. exports; expected to be a major topic at the World Economic Forum.
• "All of this is sure to come up at the World Economic Forum in Davos, which kicks off today." (Sabri Benishour, 00:48)

Notable Quote

• “Basically trying to talk down Mr. Trump and trying to rewind the tape a little bit.”
  — Hosok Lee Makeama, European Centre for International Political Economy (01:34)

• EU considering the 'trade bazooka':

  • A powerful new economic tool allowing the EU to target a wider array of U.S. sectors, including tech and intellectual property.
    “You can go after a whole different set of items rather than just goods, including tech companies and their services and intellectual property rights.”
    — Hosok Lee Makeama (01:53)

2. Global Market Snapshot

Starts: 02:08

• Asian markets: Hang Seng down 1%; Nikkei down 0.7% (clarified by Jay Shambaugh at 02:19).
• U.S. markets closed for MLK Day.
• Global wealth milestone:
  • World's billionaires collectively hold $18 trillion—a new peak after a 16% surge in 2025 and 81% since 2020.
  • Stark contrast: 1 in 4 people face food insecurity; nearly half of the global population lives in poverty.
    “One in four people worldwide struggle with food insecurity and nearly half the world's population lives in poverty.”
    — Sabri Benishour (02:44)

3. China’s Economic Resilience and Its Effect on Europe

Starts: 04:01

• China’s economic performance:
  • 5% GDP growth in 2025, defying expectations and ongoing U.S. trade hostilities.
  • Record annual trade surplus, despite reduced exports to the U.S.
• Trade diversion:
  • Surplus Chinese exports now flow into the EU and UK.
  • Jay Shambaugh observes a significant redirection: "Tariffs...very much redirect where they are because it's not like we have a flat tariff on everybody. Our imports from China are way down. Europe's imports from China are up a fair amount." (04:52)

4. Impact on European Markets

Starts: 05:09

• Currency shifts and inflation:
  • China's low inflation/deflation and a depreciated yuan (RMB) make its goods cheaper in Europe compared to domestic products.
• Risks to European industry:
  • Some imports fill voids; others threaten sectors like batteries, electric vehicles, chemicals, and machinery.
  • European solar panel makers struggle with cheap imports: “Chinese solar panels are very cheap. They're selling them below cost because they've produced far too many.” (Jay Shambaugh, 06:36)

Notable Quote

• “Those are real threats to Europe’s production model.”
  — Jay Shambaugh (06:45)

5. EU/UK Tariff Countermeasures

Starts: 07:01

• De minimis loophole closing:
  • EU and UK to end tariff exemptions for small imported packages starting in July.
  • Intended to raise import costs on Chinese goods and plug a tariff loophole.
• Effectiveness depends on size of the new fees:
  • "It will be effective in that it will make the goods more expensive. Whether they'll import a lot less or not depends on how big a fee they put on them.”
    — Jay Shambaugh (07:34)

Quotes & Highlights with Timestamps

• “President Trump wants to buy Greenland, though he hasn’t ruled out military force either.” — Sabri Benishour (00:33)
• “Trump and EU leader Ursula von der Leyen are both scheduled to attend the World Economic Forum in Switzerland this week.” — Nova Sappho (01:10)
• “They have the option of a new economic tool...the trade bazooka.” — Nova Sappho (01:45)
• “The longer kind of more systemic shift where Chinese goods overall have been getting cheaper—those are real threats to Europe’s production model.” — Jay Shambaugh (06:39)

Key Takeaways

• The U.S. is using tariff threats to push its Greenland agenda, risking a wider trade war with Europe.
• Europe is prepared to retaliate, with the possibility of deploying sweeping new trade measures aimed not just at goods but also tech and IP.
• China is weathering U.S. trade actions by redirecting exports to the EU and UK, impacting local manufacturers and raising new policy responses.
• EU/UK are moving to close small-package tariff exemptions to stem the flow of cheap imports from China.
• Global inequality remains stark, with billionaire wealth at record highs while billions remain in or near poverty.

[End of Summary]