Market Update: Geopolitics, Rare Minerals, and the Polar Silk Road

Donald Trump is back as the President of the United States and has quickly implemented controversial policies that challenge the global order and traditional conventions. Among the many eye-catching headlines Trump has expressed desires to annex Greenland and the Panama Canal and has even suggested that Canada become the 51st American state. Greenland is strategically important to the U.S. both from a military perspective and its rich deposits of rare minerals, but also because climate change could open new maritime trade routes in the Arctic, which could reduce travel times and costs. While in theory lower shipping cost could stimulate global trade, the obvious losers would be Egypt and Panama. The U.S., Russia, and China are expected to increase their military presence in the Arctic to secure their interests in the region.

Trump is Back in Full Force

Donald Trump has not wasted any time since his inauguration on January 20 as the 47th President of the United States. If the world was already breathless over his many tweets in the weeks following the presidential election on November 5, 2024, the global order and traditional conventions—including international law— are now under attack from the American administration’s unconventional policies in almost every area, including taxation, healthcare, the environment, foreign trade, aid, and international diplomacy. Traditional U.S. allies are openly threatened with economic sanctions if they do not comply, and in some cases, President Trump has refused to rule out the possibility of using military force to secure his administration’s definition of American interests.

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Supporting documents

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