US Treasury chief urges Europe not to retaliate over Greenland tariffs at Davos

At the World Economic Forum in Davos, US Treasury Secretary Scott Bessent urged European countries not to retaliate against trade tariffs tied to Donald Trump’s threats over Greenland, telling reporters: "sit back, take a deep breath, and let things play out."

Trump has said eight European countries will face tariffs "until such time as a Deal is reached for the Complete and Total purchase of Greenland", with duties due to start at 10% on 1 February and rise to 25% on 1 June. Markets reacted: the Guardian reported major Asian and European indices fell about 1.1%, the dollar slid 0.8%, gold rose 1.3% to $4,728 an ounce and silver hit $94.77 an ounce.

Bessent denied that European governments were preparing to dump US Treasuries, calling that a "completely false narrative" and accusing media coverage of being "hysterical". He cited last year’s China–US tariff escalation as context, and the Guardian noted a Deutsche Bank report saying Europe owns about $8tn of US bonds and equities. The IMF’s Kristalina Georgieva also warned that a tit‑for‑tat trade war would hurt global growth and urged leaders to avoid it.

Looking ahead, the report says Trump is due to address Davos on Wednesday and Bessent suggested a US Fed chair announcement could come "maybe as early as next week". It remains unclear whether European governments will follow Bessent’s advice and refrain from retaliatory measures.

Key Topics

Business, Scott Bessent, Greenland, Davos, Donald Trump, Us Tariffs