U.S. Commerce Secretary Howard Lutnick on Tuesday warned the European Union against retaliating to President Donald Trump’s threatened tariffs linked to Washington’s push for control over Greenland, cautioning that such a move could trigger a renewed “tit-for-tat” trade escalation even as he projected robust U.S. economic growth in early 2026. Speaking at the World Economic Forum’s 2026 annual meeting in Davos, Lutnick said he expects the U.S. economy to grow by more than 5 per cent in the first quarter of 2026, arguing that high interest rates are the main constraint preventing even faster expansion.