President Donald Trump has warned European countries of “big retaliation” if they sell US Treasury bonds in response to his recent tariff threats linked to Greenland.
Speaking on the sidelines of the World Economic Forum in Davos, Switzerland, Mr Trump told Fox Business that the United States “has all the cards” as tensions rise with European allies over his push to gain control of the Danish territory.
His comments came after reports that several European pension funds have begun reducing their exposure to US assets. Denmark’s AkademikerPension said it plans to sell about $100m in US Treasury bonds following Mr Trump’s renewed calls for the US to absorb Greenland. Greenland’s SISA Pension has also said it is considering selling US stocks, according to Bloomberg.
In Sweden, pension fund Alecta told Reuters it has sold most of its US Treasury holdings over the past year, citing political uncertainty and volatility linked to the Trump administration.
Mr Trump had earlier threatened to impose tariffs on several NATO countries that opposed his Greenland proposal, prompting speculation that European governments or investors could retaliate by selling US stocks and bonds. He later withdrew the tariff threat after reaching a tentative agreement with NATO Secretary General Mark Rutte, though few details have been made public.
Asked whether the agreement included US ownership of Greenland, Mr Trump did not give a direct answer. He said negotiations were ongoing but described the outcome as giving the US “total access” with “no end” and “no time limit.”
US Treasury Secretary Scott Bessent downplayed concerns over potential European divestment, saying Denmark’s investment in US Treasury bonds was “irrelevant.” US Treasury data shows European Union investors hold about $10 trillion in US assets.
Analysts have noted that most US assets in Europe are held by private funds rather than governments, and any large sell-off could also harm European investors themselves.
