Trump Threatens ‘Big Retaliation’ If Europe Sells U.S. Treasuries

Topline

President Donald Trump on Thursday promised “big retaliation” for European countries if they sell U.S. Treasury bonds in response to his threats to impose tariffs on NATO partners resisting his bid to acquire Greenland.

President Donald Trump speaks after presenting the “Board of Peace” at the World Economic Forum (WEF) on January 22, 2026 in Davos, Switzerland. (Photo by Chip Somodevilla/Getty Images)

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Key Facts

Trump made the comments on the sidelines of the World Economic Forum in Davos, Switzerland, telling Fox Business, “we have all the cards.”

Trump’s tariff threats—which he has since walked back—created speculation that European countries could sell off U.S. stocks and bonds as retribution.

The Danish Pension fund AkademikerPension announced plans this week to sell $100 million in U.S. Treasury bonds after Trump doubled down on his demands to absorb the Danish territory, and the Greenland SISA Pension has said it’s also considering divesting U.S. stocks, according to Bloomberg.

Swedish pension fund Alecta also told Reuters this week it’s sold most of its U.S. Treasury holdings over the past year amid volatility in the global political landscape under Trump.

Trump backed off the tariffs he threatened over the weekend after reaching a tentative deal Wednesday with NATO Secretary General Mark Rutte—though details of the plan are mostly unclear, and Trump has not directly answered questions about whether it includes the U.S. acquiring Greenland.

When Fox Business posed the question Thursday, he said, “it’s really being negotiated now, the details of it. But essentially it’s total access. There’s no end, no time limit.”

Contra

The majority of U.S. assets in Europe are held by private funds, not controlled by the government, and a sell-off would likely also negatively impact European investors, Bloomberg noted.

Big Number

$10 trillion. That’s how much in U.S. assets are held within the European Union, according to U.S. Treasury data.

Crucial Quote

“Denmark’s investment in US treasury bonds like Denmark itself is irrelevant,” Treasury Secretary Scott Bessent told reporters Wednesday when asked how concerned he is about European investors potentially pulling out of the Treasury.

What To Watch For

Some European countries were also considering new tariffs on U.S. imports and restrictions on American companies in response to Trump’s tariff threats, the Financial Times reported Wednesday, prior to Trump’s announcement he’d cancelled the tariffs.

Tangent

The EU also halted implementation of its trade deal with the U.S. announced in July last year in the wake of Trump’s tariffs threat. The deal includes a 15% tariff on most of its goods as well as “zero for zero tariffs” on strategic goods like aircraft components and semiconductor equipment.

Key Background

Trump said Saturday he would impose 10% tariffs on eight NATO countries—Denmark, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland—that sent military troops to Greenland amid his threats to take over the Danish territory. The tariffs would take effect Feb. 1 and increase to 25% in June if Denmark didn’t cede control of Greenland to the U.S., Trump said. Trump on Wednesday reiterated his desire to take over Greenland in a speech at Davos where he insisted the U.S. was the only country equipped to defend it from adversaries, such as China and Russia. Hours later, he announced he’d backed off the tariff threats.