2026-01-20 16:06
publication
2026-01-20 16:06
US Finance Minister Scott Bessent advised European countries on Tuesday to “take a deep breath” and not retaliate against the announcement of new tariffs by the US. The minister also justified the desire to acquire Greenland by pointing to the transfer of the Chagos islands by Great Britain to Mauritius.
– Take a deep breath. Don't respond with retaliation (…). The president will be here tomorrow to deliver his message. I think he will have meetings here and – once again – keep your minds open, Bessent appealed during a conversation with Fox Business journalist Maria Bartiromo at the World Economic Forum in Davos.
Warning against escalation of the US-EU conflict
Bessent earlier on Tuesday warned that an escalation in the tariff war would be a worst-case scenario, citing the trade war with China that has pushed tariffs to 145%.
Referring to Donald Trump's ambitions to acquire Greenland, Bessent pointed to the example of agreements that The UK has reached an agreement to return the Chagos Islands in the Indian Ocean to Mauritiuswhich includes the important British-American military base on Diego Garcia Island.
– Great Britain hands over the island to Mauritius. So I understand why the president thinks that for the US involvement we do not want another case of Diego Garcia, said the minister. Earlier, Trump himself used the same argument in a post on social media, although in February last year Trump supported the agreement reached by London, which guarantees a further 99-year lease of the base on the island.
What's next for the US-EU trade agreement?
Bessent also advised Europe not to abandon the trade agreement with the US, claiming that it is beneficial to both parties and that the issue of customs duties on Greenland is a separate issue. The US Trade Representative, Jamieson Greer, responded to the matter in a similar way and additionally accused the EU of not implementing the agreement – which is still awaiting EU ratification.
Answering a question about the Supreme Court possibly declaring most of Trump's tariffs illegal – including those announced in the Greenland case (the verdict in the case may be announced on Tuesday) – Bessent dismissed these concerns, claiming that The court will not invalidate a key element of the president's policy, just as it did not decide to invalidate Obamacare.
Macron accuses the United States of foul play: The US goal is to weaken Europe and vassalize it
French President Emmanuel Macron told the World Economic Forum in Davos on Tuesday that France and Europe are committed to national sovereignty and the United Nations Charter. Defending multilateralism, he emphasized that it was because of these principles that European countries joined the exercises in Greenland.
The US will attack Russian raw materials
Bessent also noted that the president already has the authority to impose tariffs on countries purchasing Russian raw materials and does not need an act of Congress to do so. He referred in this way to the draft law providing for the possibility of introducing 500 percent. customs duties on goods from countries importing Russian crude oil. He also assured that after imposing 25 percent duties on India, for this reason the Indian authorities stopped purchasing this raw material.
The Minister of Finance does not believe that the EU will use an instrument against economic coercion
US Finance (Treasury) Minister Scott Bessent on Tuesday rejected the possibility of the EU using the previously unused anti-economic coercion mechanism (ACI) against President Donald Trump's threats regarding tariffs against European countries opposed to the US takeover of Greenland.
In an interview for CNBC, Bessent said that, in his opinion, the EU's next step in this matter will be to create a special working group whose task will be contacts with the American administration. – Judging by contacts with Europeans, I believe that they will now create a working group. We have already seen many working groups, he added.
– I am convinced that European leaders will not escalate the conflict and everything will end in a way that will be beneficial to both sides – he argued.
The “Frankfurter Allgemeine Zeitung” wrote on Tuesday about the EU instrument for counteracting economic coercion (Anti-Coercion Instrument, ACI). According to the German daily, the EU could use this mechanism, created in 2023 with Russia and China in mind, for the first time in response to the threat of tariffs by the US. This mechanism allows for retaliatory actions, such as imposing tariffs and investment restrictions, in response to economic pressure from third countries. As the newspaper notes, the tool created for Russia and China could also be used against the USA.
In an interview with CNBC, Bessent also emphasized that US control over Greenland is important because it will “stop any kinetic war.” – Why not prevent a problem before it arises? – he said.
He added that European countries should contribute their “fair share” to defense. – While Europeans build schools and have health care, we defend the world – he emphasized.
Earlier on Tuesday, during a briefing, Bessent also rejected speculation that European countries might sell US treasury bonds. – US public debt is the most liquid market, it is the basis of all financial transactions and I am sure that European governments will continue to maintain it – he said.
– I believe that we are dealing here with a completely wrong narrative that defies all logic. I think everyone should take a deep breath and stop listening to the hysterical media, he added.
The European Council announced an extraordinary meeting of EU leaders on Thursday to respond to US actions. According to the media, the possibilities include imposing tariffs on American imports worth EUR 93 billion per year.
European Commission President Ursula von der Leyen said on Tuesday in Davos that US President Donald Trump's announcement of additional tariffs was a mistake. She assured that Europe shares US goals when it comes to Arctic security, but emphasized that they can only be achieved together.
From Washington Oskar Górzyński (PAP)
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