Donald Trump warns of “big retaliation” if European nations sell off US Treasuries, amid ongoing tensions over Greenland and trade.
DAVOS: President Donald Trump has warned of major reprisals if European countries sell off their holdings of US Treasury bonds to pressure Washington.
“If that would happen, there would be a big retaliation on our part, and we have all the cards,” Trump said in a Fox Business Network interview.
He acknowledged that European countries hold significant amounts of US Treasury securities.
The remarks follow heightened tensions over the future of Greenland, an autonomous Danish territory which Trump has repeatedly expressed a desire to acquire.
The US president argues America deserves Greenland as it would defend the island, though neither Russia nor China claims it.
Trump recently threatened tariffs on European nations for not acquiescing to his Greenland demand, unsettling global markets.
At the World Economic Forum in Davos, Trump on Wednesday walked back threats to seize Greenland by force from ally Denmark.
He also lifted the threat of sanctions against European nations.
Some observers note Europe holds potential economic leverage, as European NATO countries own over $2 trillion in US Treasuries.
Including Canada, the total rises to approximately $3 trillion, according to US government data.
Swedish pension fund Alecta said it sold most of its US Treasury bonds over the past year, citing the current administration’s unpredictability and growing US debt.
It is the second large Nordic fund to announce such a move, after Danish fund Akademiker Pension said Tuesday it was selling its US Treasuries.
The Danish fund stated its decision was unrelated to the Greenland situation, instead linking it to poor US government finances.
US Treasury Secretary Scott Bessent this week rejected the idea that Europeans were targeting US debt in retaliation for Washington’s designs on Greenland.
