Global markets took a major hit this week following a series of controversial statements and trade threats by President Donald Trump.
Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, blasted the administration’s approach as reckless, writing:
“Stupid stupid ego driven policy starting an unnecessary trade war with our NATO allies. Hurting markets globally. Dementia based politics is detrimental to our future.”
In a follow-up post, Gerber also questioned the legality of the proposed tariffs.
“Not to mention these wild tariff threats are not even constitutional. Where in the Supreme Court… scared to do what’s right. Not surprising the rigged court is nowhere to be seen.”
Gerber’s remarks echo growing concern among investors and analysts that U.S. trade policy is being shaped by impulsive decisions and personal grievances rather than long-term strategy.
His criticism reflects a broader unease with the White House’s lack of official communication on key issues, relying instead on sporadic social media posts.
Trump Links Greenland to Nobel Peace Prize
In a development that stunned world leaders gathered at Davos, Trump sent a message to Norwegian Prime Minister Jonas Gahr Støre saying his push to take control of Greenland was tied to not winning the Nobel Peace Prize.
“Considering your Country decided not to give me the Nobel Peace Prize … I no longer feel an obligation to think purely of Peace, although it will always be predominant, but can now think about what is good and proper for the United States of America,” Trump wrote.
“The World is not secure unless we have Complete and Total Control of Greenland.”
Greenland is a territory of Denmark, not Norway, and the Norwegian government has no say in Nobel decisions.
Trump doubled down on social media hours later, saying, “NATO has been telling Denmark, for 20 years, that ‘you have to get the Russian threat away from Greenland.’ Unfortunately, Denmark has been unable to do anything about it. Now it is time, and it will be done!!!”
Markets React to Uncertainty
The reaction from global markets was swift. S&P 500 futures fell 1.12%, the STOXX Europe 600 dropped 1.25%, and Japan’s Nikkei 225 slid 0.65%.
The only major index to post gains was South Korea’s KOSPI, which rose 1.32%. Gold hit a record high of $4,673.4 as investors scrambled for a safe haven.
Bitcoin also took a hit, falling to $93,000.
Financial analysts say the volatility is being driven by fears of a renewed trade war between the U.S. and Europe.
ING analysts Carsten Brzeski and Bert Colijn said that additional tariffs of 25% “would probably shave 0.2 percentage points off European GDP growth,” though they cautioned that model-based estimates don’t fully capture the uncertainty and geopolitical risks now in play.
UBS economist Paul Donovan warned that new tariffs “imply U.S. consumer prices of goods from the E.U. and UK will increase 4% to 10% (within about six months). This may reinforce the narrative of the U.S. affordability crisis.”
Support for Greenland Acquisition Is Low
Trump’s unusual rationale for acquiring Greenland appears to have little backing among the American public.
A Reuters/Ipsos poll found that only 17% of Americans support the idea, while 47% oppose it.
Support for using military force is even lower, with just 4% in favor and only 8% of Republican voters approving.
Brzeski and Colijn also warned, “Whether the new tariff threat and the situation in Greenland turn out to be the tipping point that finally triggers European unity and Europe’s rise as a geopolitical power remains to be seen. What is clear is that a full-blown trade war between the E.U. and the U.S. would leave only losers.”
As markets brace for further turbulence, Gerber’s warning about the cost of chaotic leadership is resonating.
“Dementia based politics is detrimental to our future,” he said. For now, global investors appear to agree.
IMAGE CREDIT: ”Donald Trump” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.