Trump's tariffs: PFA recommends staying calm
President Trump’s new tariff threats against Europe in connection with the conflict over Greenland have initially been met with a negative reaction in the stock markets. PFA’s Chief Strategist, Tine Choi Danielsen, advises maintaining calm and adopting a long-term perspective.
Donald Trump has threatened to impose tariffs on European goods as part of the escalating conflict over Greenland’s future. The threats are reminiscent of what happened last spring, when the extensive tariff proposals from April 2025 – the so-called “Liberation Day” – temporarily sent stocks into freefall.
Awaiting the EU’s response
Stock markets have reacted to Trump’s statements with moderate declines in Europe, while the US markets, due to a bank holiday, will not open until tomorrow. At the same time, the situation remains unresolved regarding the European response.
“We are awaiting new information, particularly the EU’s response. The picture may look different after that response. That said, higher tariff rates will negatively impact growth in Europe,” says Tine Choi Danielsen, Chief Strategist at PFA.
At PFA, the development is being closely monitored. In fact, PFA took several measures last year to protect customers’ pension savings.
“We sold off US government bonds and increased our currency hedging last year because we were concerned about the US’s unilateral approach to trade policy and the Trump administration’s repeated challenges to the central bank’s independence. Naturally, we are monitoring the situation very closely and are prepared to take further action if necessary,” explains Tine Choi Danielsen.
Stick to your investment choices
PFA’s advice to customers is clear: Stay calm and think long term.
“We will take care of the investments within the investment profiles, and we recommend that customers stick to their profile and leave it to PFA to manage equity risk during the temporary turbulence that may follow political unrest,” says Tine Choi Danielsen.
She points out that investors got a taste of how markets can decline rapidly – but also recover surprisingly quickly – in April 2025.
“When Trump made his major tariff proposal in April, we saw significant declines. But it turned out to be a good idea to remain calm and stay the course. Markets recovered quickly, and customers who stuck to their investment strategy soon regained lost ground,” highlights Tine Choi Danielsen.
She also reminds us that we are coming off a period of very strong returns.
“Last year, PFA customers with medium-risk profiles enjoyed returns of up to 12 per cent, and over a three-year period, the return stands at around 40 per cent. It is important to keep this in mind when assessing the current situation,” says Tine Choi Danielsen.