Davos 2026: Fearing escalation, US Treasury Secretary urges Europe not to retaliate against Trump’s Greenland tariffs threat
&imwidth=600&imheight=450&format=webp&quality=medium "Davos 2026: Fearing escalation, US Treasury Secretary urges Europe not to retaliate against Trump’s Greenland tariffs threat")
US Treasury Secretary Scott Bessent speaks during a press conference outside of the USA House at the annual meeting of the World Economic Forum (WEF) in Davos Photograph: (AFP)
These statement comes after global stock markets plunged sharply amid political uncertainties as multiple European leaders, including France's President Emmanuel Macron, called for the European Union to exercise its powerful anti-coercion instrument against the United States.
US Treasury Secretary Scott Bessent urged calm over President Trump's tariff threat as the trade relationship between the European Union and the United Kingdom sharply deteriorated over the Greenland standoff. He warned that the "worst thing these countries can do is escalate against the United States," while citing last year's tariff war that broke out between the Washigantion and Beijing after China escalated imposing retaliatory tariffs on the United States.
Speaking at event at Davos during the World Economic Forum, Bessant said, countries and companies should pause their response and "let thing play out" after US President Donald Trump ramped up his efforts to acquire Greenland, threatening multiple European countries, including Demark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, accusing them of "playing this very dangerous game" by journeying to Greenland for a "purpose unknown."
Bessant specified that “what President Trump is threatening on Greenland is very different from the other trade deals.” therefore “I would urge all countries to stick with the trade deals we have agreed on,” he said.
Trump announced 10 per cent tariffs effective February 1 against these countries for opposing his plans to acquire Greenland, adding that "On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland".
These statement comes after global stock markets plunged sharply amid political uncertainties as multiple European leaders, including France's President Emmanuel Macron, called for the European Union to exercise its powerful anti-coercion instrument against the United States if President Donald Trump imposes tariffs against the European countries.
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The group's trade-defence tool, never used before, is described as a weapon against coercion by imposing a blockade on imports of goods and services from a hostile country to protect the EU and its member states from economic pressure or intimidation by non-EU countries.
The European Union’s Anti-Coercion Instrument (ACI) allows the bloc to act collectively when a non-EU country uses or threatens economic measures to force policy changes. It enables the European Commission to investigate coercion, seek dialogue, and, if needed, impose proportionate countermeasures such as tariffs, trade restrictions, investment limits, or exclusion from EU public procurement. The tool can be invoked when economic pressure is used to undermine the EU’s or a member state’s sovereign decisions.
