Donald Trump will not be able to force Greenland to change ownership,a former top adviser to the US president has told the BBC.
IBM’s vice chairman Gary Cohn, who advised Trump on the economy in his frist term, said “Greenland will stay Greenland” and linked the need for access to critical minerals to his former boss’s plans for the territory.
Separately, US Treasury Secretary Scott Bessent urged people to “relax” and “let things play out” on the tariff threats against Europe over Greenland.
Speaking at a news conference at the World Economic Forum in Davos, Bessent compared the reaction to Trump’s proclamation on US tariffs last year and claimed the current situation was different.
Cohn is one of America’s top tech bosses, a leader in the race to develop AI and quantum computing, and served under trump as director of the White House National economic Council.
In a sign of how seriously business leaders are taking the crisis,he warned “invading an self-reliant country that is part of Nato” would be “over the edge”.
He also suggested the president’s recent comments about Greenland “may be part of a negotiation”.
“I just came from a US congressional delegation meeting, and I think there’s pretty uniform consensus with both Republicans and Democrats that Greenland will stay Greenland,” he said.
Greenland would be happy for the US to increase its military presence on the island,he said,with the North Atlantic and arctic Ocean “becoming much more of a military threat”.
The US coul
Janet Yellen Addresses Concerns Over Biden’s Tariff Comments
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U.S. Treasury Secretary Janet Yellen is scheduled to speak to delegates at an economic gathering on Wednesday, following market reactions to President Biden’s recent comments regarding potential tariff increases on Chinese goods. Yellen sought to calm anxieties on Tuesday, characterizing the response as an overreaction reminiscent of a similar situation in April.
President Biden’s Tariff Announcement
President Biden announced on October 10, 2023, his intention to consider increasing tariffs on steel and aluminum imports from China, citing unfair trade practices.The White House statement indicated the governance would investigate the impact of these tariffs on American industries.This announcement triggered concerns about escalating trade tensions and potential inflationary pressures.
Janet Yellen’s Response and Historical Context
Yellen directly addressed the market’s reaction,stating it mirrored the “hysteria” observed on April 2nd,2023. On April 2nd, reports of potential tariffs on Chinese goods also led to market volatility. In a press release from April 3rd, 2023, the Treasury Department emphasized the importance of a measured approach to trade policy.yellen urged stakeholders to “sit back, take a deep breath and let things play out,” suggesting the administration is carefully considering the implications of any trade actions.
Impact on Financial Markets
Following Biden’s October 10th announcement, the dow Jones industrial Average experienced a decline of over 300 points. CNBC reported that concerns about trade policy were a primary driver of the sell-off. Yellen’s comments on Tuesday aimed to stabilize markets by signaling a purposeful and cautious approach to trade negotiations.The S&P 500 also saw a decrease, closing down 1.6% on October 10th, 2023.
United States Trade Representative (USTR) Investigation
The USTR is currently conducting a Section 301 investigation into China’s trade practices, focusing on issues such as intellectual property theft and forced technology transfer. The USTR website details the scope and objectives of this investigation. The findings of this investigation will inform the administration’s future trade policy decisions regarding China. The investigation was initiated at the direction of President Biden on October 10,2023.
Potential Economic Consequences
Increased tariffs could lead to higher prices for consumers and businesses, potentially contributing to inflation. The Peterson institute for International Economics published a report in 2019 estimating that tariffs on Chinese goods cost U.S. consumers $4.4 billion per month. While the current situation differs, the report highlights the potential for tariffs to negatively impact the U.S.economy. Conversely, proponents of tariffs argue they can protect domestic industries and create jobs.
