US Treasury Secretary Scott Bessent dismissed Denmark’s recent sale of US Treasurys during a press conference at the World Economic Forum in Davos, stating it is “irrelevant” and expressing his lack of concern. “It’s less than $100 million,” he remarked, emphasizing that the country has been offloading Treasurys for years without issue.
Meanwhile, tensions escalated as President Trump arrived at the forum amidst his renewed threats of tariffs against allies due to his controversial bid for Greenland, a territory belonging to Denmark. Trump insisted that Greenland is crucial for national and global security, stating, “There can be no going back — On that, everyone agrees!” He proclaimed the United States remains the foremost power globally, asserting optimism that “things are going to work out pretty well” regarding the situation.
The European Union is preparing to retaliate against the US over these tariff threats. European Commission President Ursula von der Leyen stated that while Europe favors dialogue and solutions, it is ready to respond with “unity, urgency, and determination” if necessary. Trump announced plans for a 10% tariff on products from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, starting February 1, with a potential increase to 25% on June 1 if no agreement is reached.
Adding to the tension, Trump has expressed intentions to impose steep tariffs on French wine and champagne in response to French President Emmanuel Macron’s refusal to join his proposed peace initiative. Following Trump’s announcement, discussions within EU capitals emerged about imposing tariffs of up to $108 billion on American goods.
Although the situation suggests impending trade disputes, Trump remains hopeful that his pursuit of Greenland won’t alter the EU’s trade agreements with the US or its investments. This situation highlights the complexities of international relations, trade dynamics, and the impact of political decisions on global markets.