US, Europe to resolve Greenland dispute Says Treasury chief
US Treasury Secretary Scott Bessent stated that Washington and European capitals would navigate a resolution regarding the dispute initiated by the US administration’s efforts to take over Greenland. He urged markets and governments to refrain from “hysteria” concerning the potential risk of a trade war, as reported by news agency Reuters. During a discussion at the World Economic Forum in Davos, Switzerland, Bessent addressed concerns regarding potential escalation following Donald Trump’s announcement of tariffs on imports from European allies opposing US control of Greenland, an autonomous territory within the Kingdom of Denmark.
“It’s been 48 hours. As I mentioned, take a moment to unwind… I am confident that the leaders will not escalate and that this will work out in a manner that ends up in a very good place for all,” Bessent was quoted. On Saturday, Trump stated that tariffs would be imposed on goods from European nations that oppose Washington’s position on Greenland. European governments contend that these measures would violate a trade agreement established with Trump last year. European Union leaders are set to convene at an emergency summit in Brussels on Thursday to deliberate on potential retaliation measures. One option being evaluated involves a set of tariffs on €93 billion ($108 billion) in US imports, which may automatically come into effect on February 6 following the conclusion of a six-month suspension.
Bessent stated that the issue had emerged only recently and that a negotiated outcome would safeguard national security interests for both the United States and Europe. Bessent, when asked about the possibility of a prolonged transatlantic trade conflict, dismissed what he characterized as worst-case assumptions. “Why are we jumping there?” Why are you assuming the worst?… Reduce the hysteria. “Take a deep breath,” he said. He also dismissed speculation that European governments might respond by selling US Treasury bonds held as reserves, which could raise borrowing costs for Washington. The US government debt, he stated, remained “the most liquid market” and the backbone of global finance, noting that European governments would continue to hold it. It is reported that Bessent has further cautioned countries against retaliating in response to the tariffs announced regarding the Greenland dispute. In response to worries regarding uncertainty for businesses, he informed reporters in Davos that a comparable sense of panic had ensued after Trump’s previous tariff actions, prior to the markets finding stability.
“I would say this is the same kind of hysteria that we heard on April 2nd. There was a panic,” he said, referring to Trump’s initial “Liberation Day” tariffs that were later reversed after market turmoil. “What I am urging everyone here to do is sit back, take a deep breath, and let things play out,” Bessent added. He also highlighted last year’s escalation between the United States and China, which witnessed tariffs rise to 145 per cent and 125 per cent respectively before relations stabilized. “What President Trump is threatening on Greenland is very different than the other trade deals. So I would urge all countries to stick with their trade deals,” he said.
