U.S. Treasury Secretary Scott Bessent downplayed Denmark’s sale of U.S. Treasurys on Tuesday, while President Trump defended his pursuit of Greenland amid escalating trade threats against European allies.
Trump Defends Greenland Pursuit, Announces Tariffs
“They’ve been selling Treasurys for years, I’m not concerned at all,” Bessent said at the World Economic Forum in Davos.
Trump arrived at the World Economic Forum in Davos, Switzerland, on Wednesday, as his revived tariff threats over his pursuit of Greenland have roiled markets and upended trading relationships. “As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back — On that, everyone agrees! The United States of America is the most powerful Country anywhere on the Globe, by far,” Trump posted early Tuesday.
The U.S. president is scheduled to hold meetings with European leaders who are reportedly furious over his escalating bid to acquire Greenland, a territory of NATO ally Denmark. Trump predicted to reporters Tuesday that “things are going to work out pretty well,” even as he suggested “you’ll find out” how far he is willing to go to acquire the island.
The European Union said on Wednesday it is ready to retaliate against Trump’s tariff threats. “Europe prefers dialog and solutions — but we are fully prepared to act, if necessary,” European Commission President Ursula von der Leyen said.
Trump announced over the weekend that the U.S. would implement 10% tariffs on eight European countries he says are obstructing a U.S. purchase of Greenland. The tariffs would begin Feb. 1 and increase to 25% on June 1 if no agreement is reached. The countries targeted are Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.
Trump has also threatened 200% tariffs on French wine and champagne after France’s leader Emmanuel Macron rejected Trump’s call to join his peace initiative.
A letter from Trump to the Norwegian Prime Minister Jonas Gahr Store was published Monday by Bloomberg, appearing to link his desire to purchase Greenland with his disappointment at not receiving the Nobel Peace Prize.
EU capitals have begun discussions to implement tariffs of up to $108 billion on American products after Trump posted his plan to levy new tariffs on Europe on Saturday. Trump predicted that his Greenland pursuit would not force the bloc to rethink its trade agreement with the U.S. or its pledged investments in the country.
The U.S. Supreme Court has not yet issued a ruling on the implications and legality of Trump’s global duties on trade partners, despite three opportunities to do so this year.
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