Is the US-EU trade deal at the crossroads? US President Donald Trump on Tuesday played down the risk of a trade rupture with Europe, expressing confidence that the European Union would continue investing in the United States even if he moves ahead with new tariffs tied to his push to take control of Greenland — a proposal that has sharply angered leaders across the continent.
“I doubt it,” Trump said at a White House press conference when asked if moving forward with Greenland-related tariffs could prompt the EU to renege on investment pledges. “They need that agreement very badly with us. They really do, they fought very hard to get it. So I doubt that," Bloomberg quoted Trump as saying.
What tariffs has Trump threatened?
Amid his ambitions of acquiring Greenland, Donald Trump announced a 10% tariff on goods from eight European countries starting 1 February, rising to 25% in June – unless an agreement is reached for the “purchase of Greenland”, a semi-autonomous territory of Denmark, a NATO ally and an EU member.
When asked how far he was willing to go to secure the island, Trump simply told reporters: “You’ll find out.”
How did EU react to Trump's tariffs?
European leaders have already expressed strong criticism over Trump's bid to take over the territory of a fellow NATO ally, Denmark.
On Tuesday, European Commission President Ursula von der Leyen said that Trump’s threats were a “mistake” that would violate the deal he forged last year with the bloc.
Trump, however, downplayed criticism from European leaders, including France’s Emmanuel Macron and the UK’s Keir Starmer, saying he expected a warmer reception in person.
“They always treat me well,” Trump said. “They get a little bit rough when they’re — you know, when I’m not around, but when I’m around, they treat me very nicely," he said.
‘…leaders will not escalate’
US Treasury Secretary Scott Bessent, in a series of interviews on Tuesday in Davos, repeatedly urged US trading partners to not retaliate over Trump’s threat to hit them with tariffs if they do not accede to his demands regarding Greenland and urged that they hear out the president during his visit.
“I am confident that the leaders will not escalate, and that this will work out in a manner that ends up in a very good place,” Bessent said during a press conference.
