US Treasury Secretary Scott Bessent stated on Tuesday that America’s relations with Europe remain solid amidst escalating tensions from new US tariff threats over Greenland. Speaking at the World Economic Forum in Davos, Bessent urged trading partners to stay calm as the situation evolves.

President Trump recently announced a 10% import tax on goods from eight European nations supporting Denmark, following his calls for the US to acquire the semi-autonomous territory of Greenland. The tariff threats are linked to US security needs against China and Russia, prompting a wave of diplomatic responses from Europe.

Europe is contemplating several countermeasures, including retaliatory tariffs and activating the EU’s Anti-Coercion Instrument. Meanwhile, Trump’s provocative social media posts and upcoming meetings with global leaders at Davos and potentially at a G7 summit in Paris are adding to the diplomatic dynamics.