Scott Bessent derides Greenland ‘hysteria’ and tells Europe not to retaliate after tariffs

Treasury Secretary Scott Bessent has told European countries not to retaliate against U.S. tariffs imposed over the Greenland crisis, urging them to pause and “let things play out.”

Speaking at the World Economic Forum in Davos, Bessent said the reaction to a 25% tariff on European countries threatened by President Donald Trump was similar to “hysteria” that came after he unveiled his so-called liberation day tariffs last year.

Trump has said he will slap a 10% tariff, later rising to 25%, “on any and all goods” sent to the U.S. from countries including U.K., Denmark, France, and Germany as he aggressively pursues taking control of the Arctic territory, which is self-governing but owned by Denmark. The European Union, which has strongly opposed the move, is mulling a slew of tariffs in response. 

As U.S. stock futures slumped on Tuesday morning, Bessent told leaders in Davos: “I would say this is the same kind of hysteria that we heard on 2 April. There was a panic.

“What I am urging everyone here to do is sit back, take a deep breath, and let things play out. The worst thing countries can do is escalate against the United States.

“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. We have agreed on them, and it does provide great certainty.”

Over the weekend Manfred Weber, an influential German Member of the European Parliament, said approving a trade deal with the U.S. struck last year was “not possible at this stage.” The deal was set to be signed later in January, but if it is not completed a package of €93 billion-worth of tariffs on goods coming from America to Europe would kick in on Feb. 7.

Bessent also played down predictions that European countries might retaliate against the U.S. over Greenland by selling their holdings of American debt, or treasuries. He said the media had “latched on” to a report from Deutsche Bank which suggested it might happen, adding: “I think it is a completely false narrative, it defies any logic, and I could not disagree more strongly.”

European leaders have labelled Trump's threats as "unacceptable" but have mostly made efforts to diffuse the tension in recent days. Danish foreign minister Lars Løkke Rasmussen told Sky News: “You can't threaten your way to ownership of Greenland. I have no intention of escalating this situation.”

British Prime Minister Keir Starmer has said retaliatory tariffs are “in no one’s interests.” And Germany's Chancellor Friedrich Merz said: “We do not want this escalation. We do not want a trade dispute with the United States of America.”

Despite this, Trump has repeatedly raised the temperature in recent days, claiming that seizing Greenland is vital for U.S. national security. On Tuesday he announced his latest threat, this time against France: to impose a 200% tariff on wines and champagne from the country. That came amid reports that French President Emmanuel Macron was unwilling to join his so-called "Board of Peace" for Gaza.

Asked if he would follow through on the wider tariff threat, Trump told NBC News: “I will, 100%.”