In a recent appearance on NBC, Scott Bessent made headlines by dismissing the European Union”s threats concerning U.S. tariffs. He argued that Europe lacks the capability to secure itself, a point he tied to Donald Trump”s ongoing interest in acquiring Greenland as part of a broader geopolitical strategy.
Bessent emphasized that the United States is unlikely to back down from its stance, asserting that while Europe may project a tough image, it lacks the strength necessary to protect critical regions. He stated, “The trade deal hasn”t been finalized, and an emergency action can be very different from another trade deal,” referring to Trump”s use of emergency powers to drive negotiations.
The Trump administration recently announced a 10% tariff on goods from eight European nations, a figure that will escalate to 25% by June unless a deal related to Greenland is reached. This move has drawn sharp criticism from leaders like French President Emmanuel Macron, who deemed the tariff “unacceptable” and indicated intentions to seek strong retaliatory measures from the EU. However, Bessent expressed little concern regarding potential EU actions.
During the interview, he conveyed skepticism about the likelihood of the Supreme Court blocking Trump”s emergency powers, predicting a ruling could come soon. “I believe that it is very unlikely that the Supreme Court will overrule a president”s signature economic policy,” he stated, comparing the situation to the court”s previous handling of the Affordable Care Act.
Bessent argued that the national emergency declared by Trump is aimed at averting a larger crisis, using economic pressure as a means to prevent military conflict. He framed the acquisition of Greenland within a larger context of Arctic competition and the historical reliance of Europe on Russian energy, which has been a significant factor in the ongoing conflict in Ukraine.
When questioned about whether Trump”s aggressive stance toward Europe is merely a bargaining tactic, Bessent asserted that the president remains steadfast in his approach. He noted, “Europeans project weakness, US projects strength,” indicating that Trump views the inclusion of Greenland as essential for enhanced security in the region.
In addition to trade discussions, Bessent shared insights regarding the Federal Reserve, suggesting that the Senate would be supportive of any of the candidates being considered to replace current chair Jerome Powell. He advocated for increased oversight of the Fed, pointing out its unique ability to create money.
In a separate note, Bessent criticized the Justice Department”s decision to initiate a criminal investigation into Powell, clarifying the distinction between necessary oversight and punitive measures. This commentary highlights the intricate relationship between economic policy and regulatory oversight in the current administration.
