Report: Tariff war over Greenland could cut global growth to 2.6%

A potential tariff war between the United States and the European Union over Greenland could push global GDP growth down to 2.6%, according to a report from Oxford Economics. The U.K.-based research firm analyzed a scenario in which the U.S. imposes an additional 25% tariff on six EU nations amid a dispute over acquiring the territory, prompting equivalent retaliatory measures. Under this scenario, U.S. GDP is forecast to fall by up to 1% from its current outlook, with the Eurozone facing a similar impact over a more prolonged period. Oxford Economics stated that given the economic size of both parties, the effects would spread globally. The resulting 2.6% growth rate would fall below the stable 2.8% to 2.9% range of the last three years and would be the lowest figure since 2009, excluding the 2020 COVID-19 pandemic.