US Treasury Chief Warns EU Retaliatory Tariffs Over Greenland Would Be ‘Unwise’

US Treasury Secretary Scott Bessent on Monday warned European countries against retaliating with tariffs over President Donald Trump’s threat to impose levies in an effort to gain control of Greenland.

“I think it would be very unwise,” Bessent told reporters on the sidelines of the World Economic Forum in the Swiss resort of Davos.

Bessent said Trump views the autonomous Danish territory as a “strategic asset,” adding that the United States would not “outsource our hemispheric security to anyone else.”

Asked about reports that Trump had linked his push for Greenland to not having won the Nobel Peace Prize in a message to Norway’s prime minister, Bessent said he was unaware of such correspondence. “I don’t know anything about the president’s letter to Norway,” he said, adding that “it’s a complete canard that the president would be doing this because of the Nobel Prize.”

Trump said over the weekend that beginning February 1, the United States would impose a 10 percent tariff on all goods from Britain, Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden until Denmark agrees to cede Greenland.

The announcement has drawn sharp criticism from US allies, with some European leaders accusing Washington of “blackmail.” Germany’s Vice Chancellor Lars Klingbeil said on Monday that Europe was preparing countermeasures.

Asked whether a deal could be reached without the United States acquiring Greenland, Bessent said, “I would just take President Trump at his word for now.”

Citing historical precedents, he noted that the United States had acquired the Panama Canal and the US Virgin Islands through purchases from foreign governments. “How did the US get the Panama Canal? We bought it from the French. How did the US get the US Virgin Islands? We bought it from the Danes,” he said.

Bessent also reiterated Greenland’s strategic importance, particularly its rare earth mineral resources, which are critical for a range of advanced technologies. Referring to Denmark, he added: “What if one day they were worried about antagonizing the Chinese? They’ve already allowed Chinese mining in Greenland, right?”