Trump tariff threats are bad, but the uncertainty they instill is much worse

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Heather StewartJanuary 18, 2026 at 12:45 PM

AI Summary

medium article 3 min

Donald Trump's threatened tariffs on European goods, stemming from his interest in acquiring Greenland, pose a significant economic risk. While the tariffs themselves are a concern, the uncertainty they create is potentially more damaging, discouraging business investment in the UK and EU. This threat comes at a particularly vulnerable time for European economies, including France, Germany, and the UK, as they navigate budgetary issues and seek economic recovery. The tariffs could also lead to higher inflation in the US, hindering the Federal Reserve's ability to cut interest rates. Furthermore, Trump's unpredictable economic policies risk destabilizing US financial markets, potentially undermining his own economic goals.

Key Entities & Roles

Key Player Opposition Context

Jerome Powell 40% Rachel Reeves 40% Brexit 50% France 50% Federal Reserve 50% Germany 50% Kristalina Georgieva 60% European Union 60% United States ×270% International Monetary Fund (IMF) ×270% UK ×370% Donald Trump ×890%

Keywords

trump tariffs 90% economic uncertainty 80% trade war 70% inflation 60% economic impact 50% international monetary fund 50% interest rates 40% financial markets 40%