Treasury Secretary Scott Bessent urged investors and the public to remain calm on Inauguration Day 2026 amid market concerns over President Trump’s threats to impose 25% tariffs on Europe related to Greenland acquisition disputes. In a CNBC clip, Bessent said, “Everyone take a deep breath. Do not escalate. Do not escalate. President Trump has a strategy here. Hear him out and then everything will be fine.”

Bessent’s comments mirror his April 2025 “Liberation Day” guidance, when Trump’s sweeping reciprocal tariffs initially caused S&P 500 volatility before markets recovered. By addressing current “hysteria,” the Treasury Secretary emphasized that the administration has a deliberate plan designed to avoid unnecessary escalation, reassuring markets and allies that the economic measures are part of a broader strategic approach rather than impulsive action.

Financial analysts note that Bessent’s reassurance aims to maintain investor confidence while signaling that the United States remains in control of its international trade strategy. His advice underscores the administration’s intent to manage geopolitical disputes with Europe, particularly regarding strategic Arctic interests, without triggering destabilizing economic repercussions.

Observers highlight that such measured guidance seeks to balance assertive policy objectives with financial stability, reflecting lessons learned from prior tariff events and market reactions during Trump’s first term.