Tariff Tensions: The US-EU Standoff over Greenland

US Treasury Secretary Scott Bessent emphasized the strength of US-EU relations amid rising tensions from new tariffs imposed by the Trump administration. The tariffs target eight European nations supporting Denmark's stance on Greenland. The EU is contemplating countermeasures as tensions escalate.

At the World Economic Forum in Davos, US Treasury Secretary Scott Bessent assured that America's relationship with Europe remains robust. Despite tariff threats over Greenland, Bessent urged nations to let tensions 'play out' and stressed that the ties have 'never been closer.'

President Trump's announcement of a 10 percent import tax on goods from eight European countries, backing Denmark against the US's growing interest in Greenland, has stirred diplomatic reactions. Trump argues that Greenland holds strategic value for US security against potential threats from China and Russia.

In response, Europe is considering countermeasures, including tariffs and enacting the EU's Anti-Coercion Instrument. EU's toolkit to pressure the US includes new tariffs, pausing the US-EU trade deal, and the powerful 'trade bazooka' option.