President Donald Trump has threatened NATO allies with increased tariffs unless they support an American acquisition of Greenland. A report by the Kiel Institute for the World Economy reveals that U.S. consumers and importers shoulders 96% of the tariff burden during the first 11 months of Trump’s administration. While Trump claims his tariffs generated significant revenue, reality shows that American taxpayers faced $277 billion in import taxes against only $11.5 billion paid by foreign exporters. These unpredictable tariff policies undermine U.S. credibility and create confusion in trade, impacting small businesses reliant on imports. Trump’s revived interest in acquiring Greenland, including discussions of military action, has prompted military responses from Denmark and other nations. His threats of a 10% tariff escalating to 25% aim to coerce allies, yet they’re unlikely to achieve the desired consensus on Greenland’s status. This scenario stresses the detrimental effects of unilateral trade policies on foreign relations and domestic markets.
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