President Donald Trump is showing the world “the U.S. is back,” Treasury Secretary Scott Bessent told CNBC, as tensions rise over the president’s bid to acquire Greenland.
Asked about the president’s agenda at the World Economic Forum in Davos, Switzerland, where Trump is set to make an address on Wednesday, Bessent said: “The U.S. is back, and this is what U.S. leadership looks like.”
Tensions are high at the meeting after Trump raised the stakes on his intention to acquire the self-governing Danish territory, which has rattled the NATO military alliance. Overnight, he announced 200% tariffs on French wines and Champagne, and said the U.K. was showing “total weakness” by handing sovereignty of the Chagos Islands to Mauritius.
Meanwhile, Denmark sent more troops to Greenland for a military exercise.
Bessent said U.S. control of Greenland was “important,” adding: “That will stop any kind of a kinetic war, so why not pre-empt the problem before it starts?”
Bessent told CNBC that European countries should contribute their “fair share” towards defense. “While the Europeans were building schools, having healthcare, we have been defending the world,” he said.
Trump has repeatedly said taking control of Greenland is vital for U.S. national security, frequently citing concerns about Russia and China’s Arctic influence.
‘The dreaded European working group’
Pharma ‘free riding’
The cost of drugs in the U.S. was also on Bessent’s agenda and he described European countries as “free riding” on the price of medications.
In December, nine of the largest pharmaceutical companies signed deals to lower their prices in the U.S. with the aim of matching those overseas. “The idea here is equalisation over time, the U.S. consumer and our health services will pay less and the Europeans have to pay more, they’ve been free riding.”
Bessent said he held a meeting with the G7 as well as Mexico, India, South Korea and Australia last week to “avoid this chokehold that China has on minerals.” Minerals are used in a vast range of industries and products, from EVs to defense, and China controlled more than two-thirds of rare earth mine production in 2024.
— CNBC’s Evelyn Cheng and Sam Meredith contributed to this report.
