INTERNATIONAL
US Treasury Secretary Bessent brushes off 'hysteria' over Greenland
EU weighs retaliation over US President Donald Trump's Greenland-linked tariff threats as US Treasury Secretary Scott Bessent urges restraint and downplays market risks. - REUTERS/Filepic
DAVOS, Switzerland: U.S. Treasury Secretary Scott Bessent expressed confidence on Tuesday that the United States and European countries will find a solution over the U.S. administration's aim to take over Greenland, brushing off "hysteria" about a possible trade war.
AI Brief
U.S. President Donald Trump announced tariffs on Saturday on imports from European allies that oppose the United States taking over Greenland, an autonomous part of the Kingdom of Denmark.
European countries say this would violate a trade deal reached with Trump last year, and EU leaders are set to discuss possible retaliation at an emergency summit in Brussels on Thursday. One option is a package of tariffs on 93 billion euros ($108 billion) of U.S. imports that could automatically kick in on February 6 after a six-month suspension.
Bessent said the issue had only recently emerged and a solution would be found that ensures national security for the United States and Europe.
"It's been 48 hours. As I said, sit back, relax," Bessent told reporters on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland. "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."
Asked about the prospect of a prolonged trade war between the United States and Europe, Bessent replied: "Why are we jumping there? Why are you taking it to the worst case?... Calm down the hysteria. Take a deep breath."
Trump has repeatedly insisted he will settle for nothing less than ownership of Greenland. Leaders of both Denmark and Greenland have said the island is not for sale and does not want to be part of the United States.
Bessent also dismissed market speculation that European governments might sell U.S. Treasury bonds they own as reserves, making it more expensive for the U.S. government to finance itself.
"(U.S. government debt) is the most liquid market, it is the basis for all financial transactions and I am sure that the European governments will continue holding it," Bessent said.
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AI Brief
- EU leaders plan an emergency summit to consider up to 93 billion euros in automatic tariffs if the US proceeds with new duties related to Trump's Greenland demands.
- US Treasury Secretary Scott Bessent urged calm, saying a solution will be found and warning Europe not to escalate the dispute.
- Bessent dismissed speculation that European governments might dump US Treasuries, calling the debt market too essential and liquid.
U.S. President Donald Trump announced tariffs on Saturday on imports from European allies that oppose the United States taking over Greenland, an autonomous part of the Kingdom of Denmark.
European countries say this would violate a trade deal reached with Trump last year, and EU leaders are set to discuss possible retaliation at an emergency summit in Brussels on Thursday. One option is a package of tariffs on 93 billion euros ($108 billion) of U.S. imports that could automatically kick in on February 6 after a six-month suspension.
Bessent said the issue had only recently emerged and a solution would be found that ensures national security for the United States and Europe.
"It's been 48 hours. As I said, sit back, relax," Bessent told reporters on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland. "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."
Asked about the prospect of a prolonged trade war between the United States and Europe, Bessent replied: "Why are we jumping there? Why are you taking it to the worst case?... Calm down the hysteria. Take a deep breath."
Trump has repeatedly insisted he will settle for nothing less than ownership of Greenland. Leaders of both Denmark and Greenland have said the island is not for sale and does not want to be part of the United States.
Bessent also dismissed market speculation that European governments might sell U.S. Treasury bonds they own as reserves, making it more expensive for the U.S. government to finance itself.
"(U.S. government debt) is the most liquid market, it is the basis for all financial transactions and I am sure that the European governments will continue holding it," Bessent said.
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