Published by Global Banking & Finance Review®
Posted on January 20, 2026
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleUK finance minister Rachel Reeves calls for de-escalation over Greenland, emphasizing diplomacy at Davos. European leaders react to US stance.
LONDON, Jan 20 (Reuters) - Britain's finance minister Rachel Reeves said on Tuesday that it was important to de-escalate the situation over Greenland, the island which U.S. President Donald Trump has said his country should own.
"We absolutely want to de-escalate," Reeves told a Bloomberg event at the World Economic Forum in Davos. "The future of Greenland is for the people of Greenland."
"I don't think it's in anyone's interest to escalate tensions or to allow rhetoric to be a substitute for hard work and diplomacy," Reeves added.
British Prime Minister Keir Starmer called on Monday for calm discussion to avert a possible trade war with the United States over Greenland, appealing to President Donald Trump to respect alliances such as NATO rather than undermine them.
Some European leaders have advocated a tougher line against Trump and France's foreign minister, Jean-Noel Barrot, said on Tuesday that his country wanted the European Union to suspend a trade deal with the United States.
Reeves said she did not believe that a renegotiation would be productive.
"We would just urge people to keep cool heads. That's what we did all through last year and it actually served us pretty well," she said.
(Reporting by David Milliken; additional reporting by William James and Catarina Demony; editing by Sarah Young)
De-escalation refers to the process of reducing tension or conflict in a situation, often through diplomatic means, to prevent further escalation of disputes.
A trade war occurs when countries impose tariffs or other trade barriers on each other in response to trade policies, leading to increased tensions and potential economic repercussions.
NATO, or the North Atlantic Treaty Organization, is a military alliance formed for mutual defense among member countries, primarily in North America and Europe.
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