Davos Forum | Greenland and Taiwan Both Mentioned, U.S. Treasury Secretary Discusses Key Geopolitical Frontlines

U.S. Treasury Secretary Scott Bessent (Scott Bessent) was invited for an exclusive interview at the World Economic Forum (WEF) in Davos, Switzerland on 1/20. From a national defense strategic perspective, he discussed Greenland and Taiwan’s critical roles in the global security and economic systems. During the interview, he pointed out that the Trump administration views Greenland as a key strategic location for missile defense and war prevention, even considering tariffs as a diplomatic pressure tool; he also straightforwardly stated that 97% of the world’s advanced chips are concentrated in Taiwan, which has become the world’s largest “single point of failure” risk for the economy, and must be addressed by diversifying supply chains.

Trump did not attend Davos but first dropped a shockwave about Greenland and tariffs

At the start of the interview, the host pointed out that even before Trump arrived in Davos, he had made a statement:

“If Europe does not support the U.S. in acquiring Greenland, it could face heavy tariffs.”

This caused high tension within the EU, which announced plans to hold an emergency summit to discuss.

Why Greenland is so crucial: defense and war risk

Turning the topic back to Greenland, Bessent said President Trump has a very strong view on “Western Hemisphere security,” believing that the U.S. cannot outsource national security. He emphasized that Greenland is vital to the U.S. (Golden Dome) missile defense system. He further pointed out:

“If a future country takes action against Greenland, the U.S. would be dragged into war due to alliance commitments. Instead of waiting for conflict to erupt and being forced into war, it’s better to ensure Greenland remains under U.S. control from the start, directly avoiding conflict.”

Bessent added that this is not the first time President Trump has thought this way. Over the past 150+ years, U.S. presidents have always recognized Greenland’s strategic value. However, due to changes in shipping routes, military developments, and geopolitics, Greenland has become “more and more important.”

Europe threatens to halt trade negotiations; the U.S. urges calm

In response to the EU’s threat to stall U.S.-EU trade talks and even hold emergency meetings, Bessent responded that, like last April when President Trump imposed tariffs worldwide, everyone should stay calm and not react impulsively.

He believes that after President Trump arrives in Davos, he will personally clarify his stance and hold talks with various countries. Bessent also reminded that this issue should not be responded to with an immediate “no,” but rather by listening to the full reasoning first.

Tariffs as leverage in negotiations; February 1st is a critical date

Bessent revealed that the U.S. is still pushing forward with a trade agreement with Europe, aiming for a mutually beneficial deal. However, he relayed Trump’s statement that if Denmark refuses to give up Greenland, the U.S. might impose a 10% tariff on eight countries that have sent troops to Greenland starting on 2/1.

In other words, Greenland is not just a diplomatic issue but directly tied to trade and tariff tools.

Highlighting Taiwan’s 97% concentration of high-end chips as the biggest single point of failure in the global economy

After discussing Greenland, Bessent shifted from a defense and strategic perspective to Taiwan. He pointed out that currently, 97% of high-end chips are produced in Taiwan, which is the “largest single point of failure” risk for the global economy.

He stated that if Taiwan were blockaded or its production capacity destroyed, it would not only impact the tech industry but cause the entire global economy to face “apocalyptic” shocks. For this reason, the U.S. is promoting semiconductor reshoring, building factories in the U.S., to prevent high-end chips from being concentrated in one region.

(U.S. Treasury Secretary: Chip manufacturing capacity will gradually return to the U.S., but U.S.-Taiwan relations remain stable)

Pandemic as a rehearsal; the U.S. cannot allow supply chain disruptions again

In the final part of the interview, Bessent discussed that the government must intervene in industries and even invest in companies because the pandemic years served as a “real combat exercise,” clearly demonstrating to all countries that if supply chains are interrupted by war or major crises, the impact will be extremely severe and difficult to bear. He specifically mentioned that critical industries such as rare earths, semiconductors, and defense industries must operate flawlessly; the U.S. cannot afford another complete supply chain breakdown.

Regarding Trump himself, he is also expected to deliver a speech at the Davos forum. The outside world is watching whether he will once again publicly reaffirm the U.S. strategic stance on Greenland and Taiwan, which remains to be seen.

(EU to impose €93 billion in tariffs and bans on companies to counter Trump’s threats to Greenland)

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