US brushes off ‘hysteria’ over Greenland acquisition

US treasury secretary Scott Bessent expressed confidence on Tuesday that the US and European countries will find a solution over the US administration’s aim to take over Greenland, brushing off “hysteria” about a possible trade war.

US President Donald Trump announced tariffs on Saturday on imports from European allies that oppose the US 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 €93bn (about R1.78-trillion) of US 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 US 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 US 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 US Treasury bonds they own as reserves, making it more expensive for the US government to finance itself.

“(US 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.

REUTERS