The US Secretary of the Treasury, Scott Bessent, stated on Tuesday (January 20) that he believes European countries will not “escalate” tensions over the US plan to acquire Greenland, and he is confident that the US and Europe will ultimately find a solution.
During a press conference held at the World Economic Forum in Davos on Tuesday, Bessent urged all parties to remain calm regarding the Greenland issue. He called on European allies to uphold trade agreements and refuted the idea that Europe would retaliate by selling off US debt.
“I think that is completely ridiculous, without any logic, and I strongly oppose it,” Bessent said. “Look at the US debt market, it is the best-performing market globally and the best bond market among the G7. It has been our best-performing market since 2020. It is the most liquid market and the foundation of all financial transactions. I am confident that European governments will continue to hold it. As I said, I think everyone needs to calm down. Do not listen to the hysterical media, like they did before.”
Bessent compared the waves caused by the Greenland incident to the panic reaction triggered by Trump’s announcement of global tariffs in April last year.
“Let’s look back at what happened after April 2, 2025 – the hysteria. And what was the result? We experienced the fastest stock market recovery in history,” Bessent said. “So, I believe that these false narratives spread and exaggerated continuously until they get out of control. When I was still an investor, one key reason for my success was being able to step back, look at the problem from a medium to long-term perspective, and ignore the noise from the media.”
When asked if the US is concerned about any financial measures the EU or the UK might take in retaliation against America, Bessent said he is not worried.
“I have confidence that leaders of all countries will not let the situation escalate, and it will ultimately be resolved in a way that is very favorable to everyone, to national security, to the US, and to Europe,” he said.
Last Saturday (January 17), US President Trump announced that tariffs would be imposed on eight countries opposing the US purchase of Greenland. European countries stated that the new tariffs would violate the trade agreement reached with Trump last year. EU leaders will convene an emergency summit in Brussels on Thursday to discuss possible countermeasures.
Bessent expressed last Sunday (January 18) that he believes European leaders will eventually change their stance and understand that they need the protection offered by the US security umbrella.
During the press conference on Tuesday, when asked about the possibility of a protracted trade war between the US and Europe, Bessent responded, “Why think in that direction? Why bring things to the worst case scenario?… Calm down, stop creating panic.”