Bessent Downplays Greenland Tensions, Dismisses Trade War Fears

The United States Treasury Secretary Scott Bessent has brushed aside growing concerns over escalating tensions between Washington and European allies linked to Greenland, calling the alarm around a potential trade war “hysteria” and expressing confidence that diplomacy will prevail.

Speaking on the sidelines of the World Economic Forum in Davos, Bessent said the issue was still in its early stages and urged leaders not to overreact.

Tariffs Spark European Concern

The comments follow a weekend announcement by Donald Trump, who said the United States would impose tariffs on imports from several European allies that oppose Washington’s ambition to take control of Greenland, an autonomous territory within Denmark.

European governments argue that such tariffs would violate a trade agreement reached with the Trump administration last year. In response, European Union leaders are preparing for an emergency summit in Brussels, where retaliatory measures will be discussed.

Among the options under consideration is a tariff package targeting up to €93 billion (about $108 billion) worth of U.S. goods, which could automatically take effect on February 6 after a six-month suspension expires.

‘Sit Back, Relax,’ Says Bessent

Downplaying the severity of the situation, Bessent told reporters that the dispute had emerged only recently and did not justify panic.

“It’s been 48 hours. Sit back, relax,” he said.
“I am confident that leaders will not escalate and that this will work out in a way that ensures national security for both the United States and Europe.”

Despite the reassurances, analysts note that the Greenland issue has rapidly become a sensitive test of transatlantic relations, raising questions about trade stability and alliance unity at a time of wider global uncertainty.