Latest / Early Edition with Ryan Bridge / Anne Villamil: University of Iowa Economics Professor on Trump's threat of tariffs over Greenland

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Anne Villamil: University of Iowa Economics Professor on Trump's threat of tariffs over Greenland · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: So obviously it's a big story of the world at
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  Speaker 1: the moment, with the President of the United States coming
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  Speaker 1: after Greenland saying he will not use excessive force, and I'm.
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  Speaker 2: Seeking immediate negotiations to once again discuss the acquisition of
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  Speaker 2: Greenland by the United States. We probably won't get anything
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  Speaker 2: unless I decide to use excessive strength and force, where
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  Speaker 2: we would be frankly unstoppable.
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  Speaker 3: But I won't do that.
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  Speaker 2: But I don't have to use force. I don't want
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  Speaker 2: to use force.
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  Speaker 3: I won't use force. All the United.
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  Speaker 2: States is asking for is a place called Greenland.
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  Speaker 1: And University of Iowa economics professor and Villamill joins me.
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  Speaker 1: Now from the United States, can good morning to you.
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  Speaker 3: Anne, Good morning.
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  Speaker 1: This is an economic forum, and this is what it's
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  Speaker 1: not about geopolitics and land grabs as such. But we
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  Speaker 1: are looking at a tariff war between Europe and America. Now,
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  Speaker 1: how real is that threatened? How do you expect the
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  Speaker 1: EU to react?
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  Speaker 3: The tariff war is extremely concerning. It could do a
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  Speaker 3: lot of economic damage to the world. And that's what
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  Speaker 3: happens when you have a ah, you know, global taraf
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  Speaker 3: So so I'm quite concerned about it.
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  Speaker 1: All right, How would it affect the Americans? I mean,
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  Speaker 1: if if the you went through with this, could the
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  Speaker 1: US economy take the hit that they're talking about in Europe?
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  Speaker 3: Yes, both sides will, though, I mean that's the problem
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  Speaker 3: with tarafors. Everybody loses. So it's not something that we
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  Speaker 3: should be doing. It is encouraging today to hear that
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  Speaker 3: President Trump said he won't take Greenland by force, But
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  Speaker 3: there are a lot of other tools on both sides,
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  Speaker 3: meaning tariffs. You know, how did this most recent iteration start.
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  Speaker 3: Trump promise to put tariffs on eight europe In countries
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  Speaker 3: currently at ten percent until February first, and then ratcheting
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  Speaker 3: up to twenty five percent. So that will be huge
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  Speaker 3: for those countries. They had to react, and they now
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  Speaker 3: have a tool that they can use in order. It's
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  Speaker 3: called the europe Anti Coercion Instrument where they can reply.
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  Speaker 1: So okay, So the United States markets rebounded after the
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  Speaker 1: prison said he wouldn't use force to acquire Greenland. And
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  Speaker 1: it shows you just how powerful his words are, doesn't.
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  Speaker 3: It to some extent how powerful his words are, but
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  Speaker 3: to an even larger extent, how powerful international capital markets are.
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  Speaker 3: President Trump has said that he is basically all powerful
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  Speaker 3: and he is only limited by you know, kind of
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  Speaker 3: his own his own views. That's not true. The US
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  Speaker 3: has a big debt and deficit and it needs to
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  Speaker 3: finance that debt and deficit. And what we saw yesterday,
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  Speaker 3: the reason that markets declined is because interest rates went up.
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  Speaker 3: And President Trump is not sensitive to a lot of things.
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  Speaker 3: He is sensitive to markets and when the.
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  Speaker 1: Markets, yeah, absolutely he is sensitive to markets. Out have
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  Speaker 1: been a little University of Biowa economics professor for more
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  Speaker 1: Familiarly edition with Ryan Bridge.
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