Nordic Countries: Economy

Domestic

A major trade and political standoff over Greenland's mineral resources, involving the U.S. and Europe, dominated the domestic economic landscape. The U.S. threat to impose tariffs on Greenland caused severe stock market volatility, with the Dow Jones Industrial Average plunging over 800 points before partially recovering when the threat was withdrawn. This uncertainty drove investors toward safe-haven assets, sending gold prices to record highs above $4,800, while European stock markets tumbled. European leaders, including Macron and the Danish prime minister, condemned the U.S. actions and promised a united response, potentially deploying new EU trade defense tools. Separately, the Swedish telecom company Ericsson announced plans to cut approximately 1,600 jobs in Sweden as part of a broader cost-reduction effort.

International

The international focus centered on a high-stakes confrontation over Greenland, where Trump threatened tariffs on eight European countries to pressure them regarding the mineral-rich island. This action triggered global market declines and fears of a trade war. Following a meeting with NATO officials at the World Economic Forum in Davos, Trump withdrew the tariff threat and announced a framework for a future deal, leading to a market rally. In direct response, the European Union suspended its approval of a major trade deal with the U.S. and prepared, but has held back from deploying, a powerful new 'anti-coercion' trade weapon. Concurrently, several nations, including China and South Korea, are advancing plans to test Arctic shipping routes, with China criticizing U.S. motives in the region. Separately, the global shipping firm Maersk resumed container traffic through the Red Sea and Suez Canal following a sustained ceasefire in Gaza.