Bessent says US-Europe relations have 'never been closer' despite Greenland crisis

US Treasury Secretary Scott Bessent on Tuesday said America's relations with Europe remain strong and urged trading partners to “take a deep breath” and let tensions driven by the Trump administration's new tariff threats over Greenland “play out.”

“I think our relations have never been closer,” he said, speaking on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland.

On Saturday, Trump announced a 10 per cent import tax starting in February on goods from eight European nations that have rallied around Denmark in the wake of his stepped up calls for the United States to take over the semi-autonomous territory of Greenland.

Trump has insisted the US needs the territory for security reasons against possible threats from China and Russia.

The American leader's threats have sparked outrage and a flurry of diplomatic activity across Europe, as leaders consider possible countermeasures, including retaliatory tariffs and the first-ever use of the European Union's anti-coercion instrument.

The EU has three major economic tools it could use to pressure Washington: new tariffs, suspension of the US-EU trade deal, and a “trade bazooka,” the unofficial term for the bloc's Anti-Coercion Instrument that could sanction individuals or institutions found to be putting undue pressure on the EU.

Earlier Tuesday, Trump posted on social media that he had spoken with NATO Secretary General Mark Rutte and “I agreed to a meeting of the various parties in Davos, Switzerland,” where they will be attending the World Economic Forum's annual meeting this week.

Trump also posted a text message from Emmanuel Macron in which the French president suggested a meeting of members of the Group of Seven industrialised democracies in Paris after the Davos gathering.

An official close to French President Macron confirmed Tuesday that the message shared by President Trump is genuine. “It shows that the French President, both in public and in private, takes the same views,” the official said.

France considers respect for the sovereignty and territorial integrity of states to be “non-negotiable,” the official said.

Later, however, Trump posted some provocatively doctored images. One showed him planting the US flag next to a sign reading “Greenland, US Territory, Est. 2026.”

The other showed Trump in the Oval Office next to a map that showed Greenland and Canada covered with the US Stars and Stripes.

In a sign of how tensions have increased in recent days, thousands of Greenlanders marched over the weekend in protest of any effort to take over their island.

Greenland Prime Minister Jens-Frederik Nielsen said in a Facebook post Monday that the tariff threats would not change their stance.

“We will not be pressured,” he wrote.

In his latest threat of tariffs, Trump indicated that the import taxes would be retaliation for last week's deployment of symbolic numbers of troops from the European countries to Greenland — though he also suggested that he was using the tariffs as leverage to negotiate with Denmark.

In a different development, the British government on Tuesday defended its decision to hand sovereignty of the Chagos Islands to Mauritius after US President Donald Trump attacked the plan, which his administration previously supported.

Trump said that relinquishing the remote Indian Ocean archipelago, home to a strategically important American naval and bomber base, was an act of stupidity that shows why he needs to take over Greenland.

The United Kingdom signed a deal in May to give Mauritius sovereignty over the islands, though the UK will lease back the island of Diego Garcia, where the US base is located, for at least 99 years.