US–EU tariff standoff: Treasury chief Scott Bessent warns Europe against Greenland retaliation; dismisses Nobel link as 'canard'

The US has cautioned European countries against retaliatory tariffs linked to President Donald Trump’s threatened levies over Greenland, with Treasury Secretary Scott Bessent describing such a response as ill-advised.Speaking to reporters on the opening day of the World Economic Forum in Davos, Bessent said any retaliatory move by Europe would be “very unwise”, according to an AFP report. Asked about reports that Trump, in a message to Norway’s prime minister, appeared to link his bid to control Greenland with not having won the Nobel Peace Prize, Bessent said he was unaware of any such correspondence.“I don’t know anything about the president’s letter to Norway,” he told reporters on the sidelines of the World Economic Forum in Davos. He added, however, “I think it’s a complete canard that the president will be doing this because of the Nobel Prize.”Trump said over the weekend that from February 1, a group of European countries — Britain, Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden — would face a 10 per cent tariff on all goods exported to the United States. The tariffs, he said, would remain in place until Denmark agrees to cede Greenland.The announcement has triggered sharp reactions across Europe, with several US allies accusing Washington of economic coercion. German Vice Chancellor Lars Klingbeil said on Monday that Europe was preparing countermeasures in response to the proposed tariffs.Bessent cautioned European governments against escalating the dispute, reiterating his earlier warning that retaliatory tariffs would be “very unwise”. He said Trump viewed Greenland as a strategic asset vital to US security interests, arguing that Washington would not “outsource” its hemispheric security.Bessent said Trump’s interest in Greenland stems from its strategic importance. The US president views the autonomous Danish territory as a critical asset for national and hemispheric security, he said.“We are not going to outsource our hemispheric security to anyone else,” Bessent said, explaining Washington’s stance amid rising transatlantic trade tensions.Trump had for months insisted that the US should control Greenland, a position that has unsettled European Union capitals and raised the prospect of a fresh tariff confrontation between Washington and Europe.