00:00If there were an attack on Greenland from Russia, from some other area, we would get dragged in.
00:07So better now, peace through strength, make it part of the United States,
00:12and there will not be a conflict because the United States right now,
00:16we are the hottest country in the world, we are the strongest country in the world.
00:19Europeans project weakness, the U.S. projects strength.
00:24U.S. Treasury Secretary Scott Besson discussing U.S. ambitions to take over Greenland
00:29as we've already heard President Trump threatening tariffs on eight European countries.
00:34Take a look at how havens are trading because we're seeing gold and silver reach record highs.
00:39Swiss franc is also gaining ground.
00:41The Japanese yen that almost lately hasn't really behaved as a safe haven asset
00:46is actually gaining ground against the greenback as well at a one-week high.
00:50And you can see with the moves in the commodity space how those miners in Australia are also gaining ground.
00:56And all of this coming at a time, of course, when we continue to digest the latest
01:00on the Greenland issue between President Trump and the European leaders.
01:06This is also expected to be talked about at Davos as well that starts this week.
01:11Let's bring in Bloomberg East Asia government editor John Herskovitz.
01:14John, so we've heard about the potential of more tariffs for Europe
01:18after we thought we had a trade truce between the U.S. and Europe back in the summer.
01:22So what's next here?
01:24Yeah, we have these tariff threats, February for the start of the 10 percent and June for the 25 percent.
01:32But the rhetoric is turning up.
01:35The Europeans are also trying to look at mechanisms that they can use that can counter this.
01:40You have a few things that are going on.
01:42We have the U.S.-EU trade deal, which hasn't been approved yet by the EU's parliament.
01:48This could be halted or delayed.
01:49France is backing something called the trade bazooka, which are these anti-corrosion measures
01:56which could go after American goods, services, and really hit tech companies hard.
02:02And also Europe is looking at measures just to keep the U.S. at bay
02:08and perhaps reimpose the trade restrictions on about 93 billion euros worth of goods.
02:17They were to apply these.
02:19They put these on the back burner.
02:21These could come up again.
02:23So Europe is looking at stuff.
02:25America is just turning up the heat as well.
02:28But to be fair, President Trump has been talking about Greenland since, what, 2019 or so, right?
02:32How do you wind down the tensions at this juncture?
02:36Yeah, it doesn't seem like there's an off-ramp now.
02:38And we have the high-level talks which started last week between the U.S., Denmark, and Greenland.
02:43So we have the diplomatic thing that's going on.
02:45But there is no real off-ramp that is appearing right now.
02:49The thing is, there is a solution to this.
02:51There's a 1951 treaty between the U.S. and Denmark, which allows for the U.S. to have military presence there.
02:57After the Cold War, the U.S. military presence was quite large.
03:01It's been wound down.
03:03The U.S. is also looking at trade and mineral deals.
03:06They can negotiate trade and mineral deals.
03:08So if you're looking at security, the U.S. can put more troops there.
03:11They can put more monitors there.
03:12They can do more in terms of military presence.
03:15They can do more economically if they're there for resource exploitation.
03:20But for Denmark, Europe, and Greenland, this is national integrity, self-determination, sovereignty.
03:26These are what nations are made of.
03:30And it's all being threatened and threatened to fall apart.
03:36John, to what extent does it matter to Trump that he might not get congressional backing on this, given what we saw with Venezuela?
03:45Sure.
03:46We've seen some pushback from Congress, both sides of the aisles, Republicans as well.
03:50No concrete action has been taken yet.
03:53But the thing is, this could revise Congress's intention, Congress to use its powers on tariffs, something that they've pretty much ceded to Trump.
04:03This could make Congress impose some measures which would block some of these tariffs that Trump is seeking to impose.
04:11And also, pushback is there.
04:14So Trump really risks worrying a compliant Republican Party that has gone along with a lot of his diplomatic and economic measures over this Greenland issue.
04:24So I haven't seen anything specific in Congress, but the murmurings are there, and they're from both sides of the aisle.
04:29So, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going
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